Malaysia’s CPI up 3.6% on year in June

Steady spending: Shoppers checking out clothes and other items on offer at a shopping mall. Growth in the local retail sector will be driven by steady consumer spending and boost in tourist arrivals.

KUALA LUMPUR: Malaysian consumer prices index (CPI) in June 2017 rose 3.6% year-on-year, marking the second month of moderation.

Economists surveyed by Bloomberg had expected a 3.9% rise in the CPI, which includes volatile food and fuel prices. Core inflation rose 2.5% in June 2017 compared to the same month of the previous year.

In March, CPI rose 5.1%,  the highest in eight years due to the low base last year and higher retail fuel prices compared to March 2016.

According to the Statistics Department, the overall index for CPI rose at 3.6% on a year-on-year basis in June 2017 compared with 3.9% increase in May 2017. 

Among the major groups which recorded increases were the indices for transport, food and non-alcoholic beverages, recreation services and culture, health, restaurants and hotels and housing, water, electricity, gas and other fuels.

“The index of transport group showed a significant increase of 10.5% on a year-on-year basis in June 2017, after rising 13.1% in May 2017. The average price of 1 litre of RON95 petrol was RM2.00 in June 2017 compared to RM1.70 in June 2016. 

“As for RON97, the average price increased to RM2.27 in June 2017 compared to RM2.05 in June 2016. Fuels and lubricants for personal transport equipment accounted for 7.8% of the CPI weights,” the Statistics Department said in a statement. 

The department said the index for food and non-alcoholic beverages which accounted 30.2% in the CPI weights, increased 4.3% in June 2017.

On a monthly basis, the index for food and non-alcoholic beverages increased 0.4% in June 2017, after an increase of 0.5% in May 2017. Meanwhile, the index for non-dood decreased 0.4% in June 2017 compared with the preceding month.

Based on a seasonally adjusted term, the overall CPI for June 2017 decreased 0.2% as compared to May 2017.

CPI for the period January to June 2017 registered an increase of 4.1% as compared to the same period last year. The index for food and non-alcoholic beverages was the main contributor to the CPI rise in the period January to June 2017, registered an increase of 4.2%.

Core inflation, which excludes most volatile items of fresh food, as well as administered prices of goods and services recorded changes ranging from 2.3% to 2.6% in the period January to June 2017 compared to the same period of the previous year.