KUALA LUMPUR: Malaysia’s inflation in August 2024 moderated to 1.9% compared to a year earlier, slightly less than forecast, according to the Statistics Department (DOSM).
The consumer price index (CPI) rose at a slightly lower rate than market expectations, which had predicted a 2% increase, according to a Reuters poll.
DOSM said the increase of inflation in August 2024 was driven by the incline in the main groups of restaurant & accommodation services (3.2%); personal care, social protection & miscellaneous goods & services (3.2%); housing, water, electricity, gas & other fuels (3.1%) and recreation, sports & culture (2.0%).
Meanwhile, other main groups recorded an increased rate below the overall inflation rate of 1.9%. However, clothing & footwear remained at negative 0.2% in August 2024.
However, four states recorded increases above the national inflation level namely Pulau Pinang (3.3%), Pahang (2.8%), Sarawak (2.5%) and Selangor (2.3%).
All states registered an increase in the inflation of food & beverages. The highest rate was recorded by Selangor at 2.8%, followed by Pulau Pinang (2.7%), Sarawak (2.0%), Pahang (1.9%), Wilayah Persekutuan Putrajaya (1.8%) and Terengganu (1.6%).
Meanwhile, other states showed an increase below the national inflation of food & beverages of 1.6% in August 2024.
DOSM said the overall monthly inflation for August 2024 rose 0.1%, the same rate as recorded in July 2024. The increase was mainly driven by housing, water, electricity, gas & other fuels (0.2%) and health (0.2%).
Meanwhile, core inflation remained at 1.9% in August 2024, the same rate since April 2024.
In comparison to inflation in other selected countries, inflation in Malaysia (1.9%) was lower than inflation in Vietnam (3.5%), the Philippines (3.3%), Indonesia (2.1%) and South Korea (2.0%). However, the rate was higher than China (0.6%) and Thailand (0.4%).
