Malaysia’s CPI rises above most forecasts

Malaysia’s CPI rises above most forecasts

Essentials such as transport, housing, water, electricity, gas and other fuels register higher rates.

 The transport sector saw a 3.9% rise in CPI.
KUALA LUMPUR:
Malaysia’s consumer price index (CPI) rose 2.8% year-on-year in May to 126.6 from 123.1 for the same month last year.

The increase was above the 2.6% forecast by 17 economists who responded to a Reuters poll.

The index rose 2.3% in April, according to a Reuters report.

The latest increase also surpassed the average rate of 1.9% for the period from January 2011 to May 2022.

Chief statistician Mohd Uzir Mahidin said food inflation continued to rise, reaching a new high of 5.2% — the highest since November 2011 — with 93% of all items in the group recording increases. Click here for more on food price increases

The transport index rose 3.9%, followed by restaurants and hotels at 3.7%, furnishings, household equipment and routine household maintenance (2.9%), miscellaneous goods and services (1.9%), and recreation services and culture (1.8%).

Housing, water, electricity, gas and other fuels registered an increase of 1.2%, while education edged up 1%.

The rate for alcoholic beverages and tobacco as well as health declined by 0.4% while the communications group remained unchanged from the same period of the preceding year.

Uzir said the increase in the transport group was largely due to the 63.8% increase in the price of RON97 unleaded petrol to RM4.26 per litre from RM2.60 in May 2021.

The increase in fuel prices was a direct impact from the 65.2% increase in the price of Brent crude oil to US$112.37 per barrel in May 2022.

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