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Malaysia: June inflation down 1.9% on-year as fuel price fell
KUALA LUMPUR: The Consumer Price Index (CPI) fell 1.9% in June from a year ago due to a fall in transport costs as fuel prices dropped but the decline was more than the Bloomberg survey of 1.8%.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said on Wednesday the CPI declined 1.9% in June to 119.1 from 121.4 a year ago.
“The decrease in the overall index was driven by the decline in transport (-14.3%), housing, water, electricity, gas & other fuels (-2.6%), clothing & footwear (-1.1%) and furnishings, household equipment & routine household maintenance (-0.2%) which contributed 45.7% to overall weight, ” he said.
Mohd Uzir said food & non-alcoholic beverages continued to increase in June 2020 by 1.6% to 134.9 from 132.8 a year ago. This group contributes 29.5% of CPI weight. S
He said miscellaneous goods & services rose by 3%, followed by communication (1.6%), health (1.1%) and education (0.8%).
“CPI without fuel is at a positive rate of 0.2% in June 2020 as compared to 0.1% in May 2020. CPI without fuel covers all goods and services except unleaded petrol RON 95, unleaded petrol RON 97 and diesel, ” he explained.
The lower average price of RON 95 in June 2020 which recorded RM1.54 per litre as compared to RM2.08 in June2019 contributed to the decrease of the transport and overall index.
In addition, the average price of RON 97 decreased to RM1.84per litre as compared to RM2.51 while diesel declined to RM1.71per litre from RM2.18 a year ago.
“Core index rose 1.2% in June 2020 as compared to the same month of the previous year, ” it said.
Among the major groups which influenced the increase were miscellaneous goods & services (3%), communication (1.6%) and housing, water, electricity, gas & other fuels (1.4%).
Core index excludes most volatile items of fresh food as well as administered prices of goods and services.
“CPI on a monthly basis recorded an increased by 1% as compared to May 2020, ” he said.
The increase was attributed by transport (7.8%), food & non-alcoholic beverages (0.4%), miscellaneous goods & services (0.4%), furnishings, household equipment & routine household maintenance (0.1%), alcoholic beverages & tobacco (0.1%) and health (0.1%).
Meanwhile, CPI in 2Q of 2020 decreased 2.6% to 118.2 as compared to 121.3 a year ago.
On a quarterly basis, the CPI fell 3% as compared to the first quarter of 2020. The index for all states decreased between -1.3% and -2.7% in June 2020 as compared to June 2019.
The highest decrease was recorded by Sabah and Labuan (-2.7%) followed by Sarawak (-2.6%) and Melaka (-2.6%).
However, all states registered an increase in the index of food & non-alcoholic beverages.
The highest increase was recorded by Selangor & Putrajaya (2.5%), Pahang (2.4%), Perak (2.2%), Johor (2.0%), Pulau Pinang (1.9%) and Negeri Sembilan (1.7%) and it surpassed the national index of 1.6% for food & non-alcoholic beverages in June 2020.
Source: https://www.thestar.com.my/business/business-news/2020/07/22/june-inflation-down-19-on-year-as-fuel-price-fell