July inflation falls on lower fuel prices but up from June

  • Economy
  • Tuesday, 18 Aug 2020

Statistics Department's survey of the average prices of vegetables in July (yellow) and when compared with June (white).

KUALA LUMPUR: Malaysia's inflation rate in July fell 1.3% from a year ago due to lower fuel prices and it was in line with a Bloomberg forecast but from a month ago, inflation was seen picking up.

Chief Statistician Malaysia, Datuk Seri Dr.Mohd Uzir Mahidin said in a statement on Tuesday the Consumer Price Index (CPI) fell to 119.9 from 121.5 a year ago.

“The decrease in the overall index was attributed by the decline in transport (-10.3%); housing, water, electricity, gas & other fuels (-2.6%); clothing & footwear (-0.6%) and furnishings, household equipment & routine household maintenance (-0.1%) which contributed 45.7% to overall weight, ” he said.

However, food prices continued their upward trend. Food & non-alcoholic beverages increased by 1.4% to 135.0 from 133.2 a year ago. This group contributes 29.5 per cent of CPI weight.

Miscellaneous goods & services rose by 2.9%, followed by communication (1.6%), health (1.1%) and education (1.2%).

Mohd Uzir said the CPI without fuel rose by 0.2% in July 2020 compared with June 2020.

CPI without fuel covers all goods and services except unleaded petrol RON95, unleaded petrol RON97 and diesel.

“Howeever, the core inflation index rose by 1.1% in July from a year ago due to a 2.9% increase in miscellaneous goods & services (2.9%); communication (1.6%) and housing, water, electricity, gas & other fuels (1.4%), ” he said.

Core index excludes most volatile items of fresh food as well as administered prices of goods and services.

However, the CPI in July had increased by 0.7% from June due to a 4.9% increase in transport; education (0.4%); furnishings, household equipment & routine household maintenance (0.3%); miscellaneous goods & services (0.3%); food & non-alcoholic beverages (0.1%); alcoholic beverages & tobacco (0.1%) and health (0.1%).

The CPI for January to July fell by 0.9% from the previous corresponding period due to a 10% decline in transport; clothing & footwear (-1.1%) and housing, water, electricity, gas & other fuels (-0.7%).

Meanwhile, all the states recorded a decline in the CPI for July on-year of between -0.7% and -2.2%.

Melaka recorded a 2.2% fall in CPI, Sabah & Labuan (-2.1%), Sarawak (-1.9%) and Kedah & Perlis (-1.9%).

However, all states registered an increase in food & non-alcoholic beverages.

Selangor & Putrajaya topped the list with a 2.3% increase, Perak (1.7%), Pahang (1.7%), Terengganu (1.7%) and Johor (1.6%) and it surpassed the national index.

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