July’s CPI increased to 133.1 against 130.5 the same month a year ago.

In a statement, the department said the inflation was driven by increases in the main groups, which include restaurant and accommodation services (3.4%); personal care, social protection and miscellaneous goods and services (3.2%); recreation, sports and culture (2.2%); and health (1.9%).

Food and beverages recorded a slower 1.6% increase against a 2% rise in June 2024.

“Housing, water, electricity, gas and other fuels recorded a 3.2% increase; education (1.7%), transport (1.2%) and furnishings, household equipment, and routine household maintenance (0.9%) rose at the same rate as the previous month,” the report said.

Chief Statistician Uzir Mahidin said the rise in the restaurant and accommodation services was due to an increase in its main subgroup, beverage preparation services, to 4.3% in July versus June 2024’s 4.2%.

The rise in personal care inflation, social protection and miscellaneous goods and services, which rose 3.2% in July 2024 versus 2.8% in June 2024, was due to an 18% rise in jewellery and watches (June 2024: 15.3%).

Furthermore, July inflation for the transport sector remained at 1.2%, the same as in June 2024.

As for state-level inflation, Uzir said most of the states recorded increases below the 2% national inflation except for four states, Penang (3.4%), Sarawak (2.7%), Pahang (2.6%) and Selangor (2.4%).

“All the states registered a slower rise in food and beverage inflation with the highest rate recorded by Selangor at 3%, followed by Penang (2.8%), Sarawak (1.9%), Sabah (1.7%), Pahang (1.6%) and Terengganu (1.6%).”