Inflation drops to 1.2% in May, lowest in 51 months

Inflation drops to 1.2% in May, lowest in 51 months

The statistics department cites the decline in global oil prices that month.

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The food and beverages group, which accounts for 29.8% of the total consumer price index, increased more slowly at 2.1% in May compared with 2.3% the preceding month.
PETALING JAYA:
Malaysia’s inflation rate slowed to 1.2% in May, its lowest rate in 51 months according to the statistics department.

The department said this followed the decline in global oil prices and was in line with developments in South Korea, Indonesia, and the Philippines.

It said the food and beverages group, which accounts for 29.8% of the total consumer price index (CPI), increased more slowly at 2.1% in May compared with 2.3% the preceding month.

Chief Statistician Uzir Mahidin said 11 states recorded inflation rates below the 1.2% rate in May, with Kelantan the lowest at 0.3%, while every state saw an increase in the inflation of food and beverages.

Nonetheless, five states recorded increases above the national level, namely Johor (1.8%), Negeri Sembilan (1.6%), Selangor (1.5%), Melaka (1.5%), and Kuala Lumpur (1.4%).

Other groups that recorded declines included personal care (0.4% decrease), education (0.1%), housing, water, electricity, gas and other fuels (0.3%), recreation (0.4%), and alcoholic beverages and tobacco (0.2%).

There were no changes to the inflation rate for transport or insurance and financial services.

“Nevertheless, there are a few groups that recorded a higher increase compared with April, namely restaurant and accommodation services (0.1% increase), health (0.2%) and furnishings, household equipment and routine household maintenance (0.1%),” he said.

Uzir said that 342 out of 573 items, or 59.7%, recorded price increases. However, 330 of them registered an increase of 10% or less.

“Twelve items recorded increases of more than 10% in May. However, 180 items showed a decline and 51 items remained unchanged, and thus, to a certain extent, offset the inflation from increasing further,” he said.

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