Malaysia's inflation recorded a slower increase of 2.5% in 2023 - DoSM

KUALA LUMPUR: Malaysia's inflation in 2023 recorded a slower increase of 2.5 per cent from 3.3 per cent in 2022 with the index points at 130.4 against 127.2 in the previous year, said the Department of Statistics (DoSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the slower increase of inflation in 2023 was in tandem with the decline in most global commodity prices, the easing of supply disruptions, price controls and the provision of subsidies for selected goods.

"Despite a decrease in energy commodity prices in 2023 (-29.9 per cent) as compared to 2022 (60.0 per cent), the price level of this commodity is still higher compared to pre-pandemic prices.

"The increase in fuel costs and dependence on imported liquefied natural gas (LNG) has prompted the government to adjust electricity tariffs under the implementation of the Imbalance Cost Pass-Through (ICPT) mechanism for users in Peninsular Malaysia for the period of July 1, 2023 to Dec 31, 2023,” he said in a statement today on the Analysis of Annual Consumer Price Index (CPI) 2023.

He said the inflation for the main groups in 2023 showed an increase except for communication (-3.0 per cent) with the highest increase recorded by restaurants and hotels at 5.6 per cent.

This was followed by the food and beverages (4.8 per cent) group; miscellaneous goods and services (2.4 per cent); furnishings, household equipment and routine household maintenance (2.3 per cent); health (2.2 per cent); education (1.9 per cent); housing, water, electricity, gas and other fuels (1.7 per cent); recreation services and culture (1.5 per cent); transport (1.1 per cent); alcoholic beverages and tobacco (0.6 per cent) and clothing and footwear (0.3 per cent).

Mohd Uzir said the food and beverages group which is the largest component of household spending in Malaysia with a contribution of 29.5 per cent of total CPI weight started to ease to 4.8 per cent compared to 5.8 per cent in the preceding year.

The slower increase of this group is largely due to an increase in the food at home component which increased 3.5 per cent compared to 5.3 per cent recorded in 2022.

Meanwhile, food away from home increased at 6.7 per cent in 2023 from 6.6 per cent in 2022.

Commenting on the inflation at the state level, Mohd Uzir said all states registered increases in inflation with five states showing an increase above the national inflation level of 2.5 per cent in 2023.

The highest increase was recorded by the Federal Territory of Putrajaya (3.4 per cent), followed by Sarawak (3.1 per cent), Selangor (2.9 per cent), Perak (2.8 per cent) and Pahang (2.6 per cent).

The Federal Territory of Labuan recorded the lowest inflation of 1.6 per cent, he added. - Bernama