Malaysia Jan CPI slips 0.7% on lower fuel prices

KUALA LUMPUR: Malaysia's Consumer Price Index (CPI) decreased 0.7% year-on-year in January to 120.5, underpinned by lower fuel prices in the transport sector.

According to Reuters, the decline in Malaysia's CPI was the first in over a decade.

The Department of Statistics Malaysia said that on a month-on-month basis, the index also decreased 0.5% as compared to December 2018.

The decrease in the overall index was attributed to the transport index, which fell 7.8% due to the lower average price of RON95 during the month, which recorded RM1.98 per litre as compared to RM2.28 a year ago. 

RON97 meanwhile fell to RM2.28 per litre versus RM2.55 while diesel was RM2.12 per litre from RM2.31 in January 2018.

Other sectors, however, showed increases in their respective indices, helping to offset the decrease in transport CPI.

Food and non-alcoholic beverages, which contributes to 29.5% of consumer price inindex weighting, rose 1% to 132.9 as compared to 131.6 in the comparative month.

"Wilayah Persekutuan Kuala Lumpur  (+3.7%) and Johor (+1.1%) recorded higher increases for food and non-alcoholic beverages index above the national index level in January 2019 as compared to the corresponding month in 2018," said chief statistician Datuk Sri Mohd Uzir Mahidin.

Housing, water, electricity, gas and other fuels increased 2%, followed by restaurants and hotels (1.2%), alcoholic beverages and tobacco (1.1%) and education (0.9%).

In the individual state breakdown, only Kuala Lumpur showed a CPI increase of 0.2% from December 2017.

All other states recorded decreases of 0.2% to 1.5% over the year.