CPI up 3.4% in June


Higher fuel prices are the main cause

PETALING JAYA: The country’s inflation rate, as measured by the Consumer Price Index (CPI), rose 3.4% in June, due to higher fuel prices when compared with a year ago, but the increase was lower than a survey of 3.5%.

Thirteen economists polled by Reuters had forecast the index to increase 3.5% year-on-year.

The index in April rose at its fastest pace in four years.

Chief Statistician Datuk Seri Mohd Uzir Mahidin (pic below) in a statement yesterday said the CPI rose 3.4% in June to 123.2 when compared with 119.1 a year ago.

“The CPI remained positive for the fifth consecutive month since February 2021 due to the lower base effect last year as a result of the decline in fuel prices for private vehicles,” he said.

Transport group (16.6%) was the main contributor to the increase in the headline inflation. This was followed by housing, water, electricity, gas and other fuels (3.2%); furnishings, household equipment and routine household maintenance (2%) and food and non-alcoholic beverages (1.3%), he said.

On a monthly basis, the CPI increased by 0.1% as compared to May 2021 due to food and non-alcoholic beverages (0.3%) and miscellaneous goods and services (0.1%).

“This slow momentum was due to the implementation of the movement control order (MCO) 3.0 and operations closure for non-essential sectors throughout June 2021 has eased the inflation pressures,” he said.

As for the second quarter, the CPI rose 4.1% to 123.1 as compared to 118.2 a year ago. On a quarterly basis, the CPI increased 0.5% from the first quarter.

Mohd Uzir said core index rose 0.7% in June from a year ago, due to housing, water, electricity, gas and other fuels (3.2%); furnishings, household equipment and routine household maintenance (2%); food and non-alcoholic beverages (1.3%) and transport (1%).

The other sectors which showed slight increases were recreation services; health; education; restaurants and hotels, and miscellaneous goods and services (0.3%).

“Core index excludes most volatile items of fresh food as well as administered prices of goods and services,” he said.

The CPI without fuel increased 1.5% in June 2021.

This covered all goods and services except unleaded petrol RON95, unleaded petrol RON97 and diesel.

He pointed out that seven states surpassed the national CPI rate of 3.4% in June –Terengganu (4.4%), Kelantan (4.1%), Pahang (3.9%), Perak (3.6%), Selangor and Putrajaya (3.5%), Negri Sembilan (3.5%) and Kedah and Perlis (3.5%).

All states registered an increase in the index of food and non-alcoholic beverages with Terengganu recording the highest at 2%; Selangor and Putrajaya (1.9%), Kelantan (1.7%) and Kuala Lumpur (1.4%).

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

Malaysia looking forward to welcoming China in CPTPP as early as next year
Indonesia’s halt to palm oil expansion set to expire soon
China defends tech crackdown in meeting with Wall Street chiefs
CPO futures likely to see technical correction next week
Evergrande says six execs redeemed investment products in advance
Infineon opens Austria plant early in chip capacity boost
Indonesia may reopen to tourists from some countries in October
Airbus reaches deal to restructure AirAsia jet order
Oil price falls as storm-hit US supply trickles back into market
World shares fall as markets await Fed meeting, taper timeline

Stories You'll Enjoy


Vouchers