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%).

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