Malaysia's inflation remains 2% in June

KUALA LUMPUR: Malaysia's inflation in June 2024 remained unchanged from the previous month at 2%, below the expectations of market observers.

Economists had said the country's consumer price index (CPI) could be impacted by the removal of the blanket diesel subsidy in June, sending it higher than the previous month's (May) inflation rate of 2%.

However, data released by the National Statistics Department showed the increase in consumer costs were slightly below the 2.2% median rate expected by a Reuters poll of economists.

Refinitiv data shows that 22 forecasters contributing to the survey had projected inflation rates ranging from 1.9% to 2.6%.

According to the Statistics Department, restaurant and accommodation services led the increase in costs with a 3.3% incline year-on-year, as compared to 3.2% in May, due to an increase in the main subgroup of beverage preparation services.

Meanwhile, the inflation for housing, water, electricity, gas and other fuels increased at the same rate as the previous month at 3.2%, due mainly to the subgroup of water supply and miscellaneous services relating to dwelling.

There was a 2% increase in food and beverages, as compared to 18% in May, with the main subgroup of food rising 0.9% as compared to 0.5% in the previous month.

The main subgroup of food away from home, however, slowed its increase to 3.3% from 3.4% in May.

On a monthly basis, inflation in June rose 0.2% as compared ot 0.3% in May.

Over the entire second quarter of April to June, prices rose 0.6% against 0.7% in the first quarter of 2024.

The country's core inflation increased 1.9% in June, equal to the rate in May.