Chief Statistician 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%) compared to 2022 (60%), the price level of this commodity was still higher compared with pre-pandemic prices,” he said in a statement.

He said inflation for the main groups in 2023 showed an increase except for communications (-3%), with the highest increase recorded by restaurants and hotels at 5.6%.

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

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

He said all states registered increases in inflation with five states showing an increase above the national inflation level of 2.5% in 2023.

The highest increase was recorded by Putrajaya (3.4%), followed by Sarawak (3.1%), Selangor (2.9%), Perak (2.8%) and Pahang (2.6%).

Labuan recorded the lowest inflation rate of 1.6%, he added.