The statistics department attributed the marginal drop to slower price increases in key sectors such as information and communication (-2.3%), transport (-0.2%), and clothing and footwear (-0.1%).

Core inflation, which excludes volatile categories like food and energy, remained unchanged at 1.8%.

The statistics department said last month’s 1.8% inflation rate rise was largely attributed to higher costs in food and beverages (3.7%); and housing, water, electricity, gas and other fuels (3.2%).

Chief Statistician Uzir Mahidin said most of the states recorded increases below the national inflation level of 1.8%.

However, inflation for five states was above the national inflation level — Penang (2.9%), Pahang (2.4%), Selangor (2.1%), Johor (1.9%) and Sarawak (1.9%).

Uzir also said Malaysia’s inflation rate remained moderate compared to its regional peers.

While it is lower than Vietnam’s 2.8% and the Philippines’ 2.5%, it is higher than Indonesia’s 1.6% and Thailand’s 1.0%.