Malaysia's inflation rate unchanged at 2% in August 2023

KUALA LUMPUR: Malaysia’s inflation remained unchanged at two per cent in August 2023, similar to the growth rate recorded in July 2023, said the Department of Statistics Malaysia (DoSM).

In a statement today, DoSM said the inflation rate recorded in August was mainly due to the slower growth in restaurants and hotels, which fell to 4.7 per cent from five per cent in July 2023; food and non-alcoholic beverages (4.1 per cent against 4.4 per cent in July 2023), as well as miscellaneous goods and services which moderated to 2.4 per cent from 2.6 per cent in the previous month.

It said the food and non-alcoholic beverages group contributes 29.5 per cent of total consumer price index (CPI) weight.

Meanwhile, it said the inflation rate for the transport sector for August 2023 did not record any increase (0.0 per cent) as compared to -0.4 per cent in July 2023.

On core inflation, DoSM said it moderated to 2.5 per cent in August 2023 versus 2.8 per cent in July 2023, but it still surpassed the overall national inflation rate of two per cent.

"The highest increase was recorded by the food and non-alcoholic beverages group with a 5.1 per cent increase, followed by the restaurants and hotels group which rose 4.7 per cent and transport (up 3.6 per cent).

"Meanwhile, miscellaneous goods and services, as well as health increased 2.4 per cent, respectively,” it said.

Compared with other countries, DoSM said the inflation rate of two per cent in Malaysia was lower than that in the Eurozone (5.3 per cent), the Philippines (5.3 per cent), South Korea (3.4 per cent), Indonesia (3.3 per cent) and Vietnam (three per cent).

However, the rate was higher than Thailand (0.9 per cent) and China (0.1 per cent), it added.

At the state level, chief statistician Datuk Seri Mohd Uzir Mahidin said seven states recorded increases above the national inflation level of two per cent, namely Sarawak (3.4 per cent), Putrajaya (2.7 per cent), Perlis (2.4 per cent), Perak (2.3 per cent), Selangor (2.3 per cent), Pahang (2.2 per cent) and Melaka (2.1 per cent), while the other nine states recorded growth below two per cent.

On a month-on-month basis, DoSM said the headline inflation in August 2023 increased marginally to 0.2 per cent against 0.1 per cent in July 2023.

The increase was mainly contributed by housing, water, electricity, gas and other fuels, which rose 0.5 per cent from no changes in July 2023, as well as health, which increased 0.5 per cent from 0.2 per cent in July 2023. - Bernama