Malaysia’s inflation rate in July declines 1.3%

• Aug 19, 2020

KUALA LUMPUR: Malaysia’s inflation rate in July fell 1.3% from a year ago due to lower fuel prices and it was in line with a Bloomberg forecast, but from a month ago, inflation was seen picking up.

Chief statistician Datuk Seri Mohd Uzir Mahidin (pic) said in a statement yesterday that the Consumer Price Index (CPI) fell to 119.9 from 121.5 a year ago.

“The decrease in the overall index was attributed by the decline in transport (-10.3%); housing, water, electricity, gas and other fuels (-2.6%); clothing & footwear (-0.6%) and furnishings, household equipment & routine household maintenance (-0.1%) which contributed 45.7% to overall weight, ” he said.

However, food prices continued their upward trend. Food and non-alcoholic beverages increased by 1.4% to 135.0 from 133.2 a year ago. This group contributes 29.5% of CPI weight. Miscellaneous goods and services rose by 2.9%, followed by communication (1.6%), health (1.1%) and education (1.2%).

Uzir said the CPI without fuel rose by 0.2% in July 2020 compared with June 2020.

CPI without fuel covers all goods and services except unleaded petrol RON95, unleaded petrol RON97 and diesel. “However, the core inflation index rose by 1.1% in July from a year ago due to a 2.9% increase in miscellaneous goods and services (2.9%); communication (1.6%) and housing, water, electricity, gas and other fuels (1.4%), ” he said. Core index excludes most volatile items of fresh food as well as administered prices of goods and services.

Source: https://www.klsescreener.com/v2/news/view/715335/malaysia-s-inflation-rate-in-july-declines-1-3