Weaker ringgit pushes inflation higher

Data from the Statistics Department showed that headline inflation as measured by the consumer price index (CPI) rose 3.3% to 113.9 after fuel prices were adjusted higher from the beginning of July while the second-round effects from the GST continued to have an impact.

Economists expected prices to rise by 2.9% after June’s prices gained 2.5%. Compared with June, July’s prices were 0.8% higher with nine of the 12 major groups of goods and services in the CPI basket increasing, two remaining unchanged and one declining.