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Malaysia: May CPI rises 4.4% on-year, Terengganu highest in country
KUALA LUMPUR: Malaysia’s consumer price index (CPI) rose by 4.4% in May from a year ago, mainly due to higher transport costs caused by the rebound in oil prices, according to the Statistics Department.
Economists surveyed by Reuters had expected the index to increase 4.7% year-on-year, unchanged from April, when it grew at its fastest pace in four years.
Eight states recorded higher CPI in May with Terengganu the highest at 6.2%, Kelantan (5.6%), Pahang (5.1%), Kedah & Perlis (4.8%), Negeri Sembilan (4.7%), Johor (4.6%), Selangor & Putrajaya (4.5%) and Perak (4.5%).
All states registered an increase in the index of food & non-alcoholic beverages. The highest increasewas recorded by Terengganu at 2.9%, Kelantan (2.6%), Selangor & Putrajaya (2.1%), Pahang (1.9%) and Johor (1.6%).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the May CPI increased to 123.1 from 117.9 a year ago due to the lower base effect last year.
The higher CPI was due to a significant increase in transport (26.0%); housing, water, electricity, gas & other fuels (3.2%); furnishings, household equipment & routine household maintenance (2.1%) and food & non-alcoholic beverages (1.5%), he said.
According to the Food and Agriculture Organization (FAO) report, the global Food Price Index in May 2021 was at 127.1, a jump of 39.7% from a year ago and up by 4.8% in April.
“The sharp increase in May 2021 was driven by the increase in the vegetable oil index (124.5%) due to the surge in demand for biofuels. This was followed by sugar (57.3%), cereals (36.6%), dairy (28.0%) and meat (10.0%) as compared to a year ago, ” he said.
The increase in the grain index was an effect of the drought in South America which affected the yields of corn and soybean crops as well as coffee and sugar.
The highest demand by China has exacerbated the grain supply pressures and increased the producer costs of global livestock.
“This situation is reflected by the increase in the food & non-alcoholic beverages group in Malaysia. However, the annual increase in May 2021 was lower than the previous month at 1.9%, ” he said.
Mohd Uzir pointed out this slow momentum was due to the implementation of price control during Festive Season Price-Controlled Scheme throughout May which eased the inflation pressure for this group.
As for the period of January to May 2021, the CPI increased by 2.1% from the previous corresponding period.
“On a monthly basis, the CPI remained unchanged as compared to April 2021, ” he said as the increase in the group of furnishings, household equipment & routine household maintenance by 0.3% and transport 0.2% was offset by a decrease in the food & non-alcoholic beverages at 0.1%, ” he explained.
Core index, which excludes most volatile items of fresh food as well as administered prices of goods and services, rose 0.8% in May 2021 from a year ago.
The CPI without fuel increased by 1.6% in May 2021 to 113.8 as compared to 112 a year ago.
CPI without fuel covers all goods and services except unleaded petrol RON95, unleaded petrol RON97 and diesel.
Out of 552 items covered in CPI, 363 items showed an increase in May 2021. On the contrary, 123 items declined, while 66 items were unchanged.
Based on the performance of 552 items by category of goods and services, non-durable goods (296 items) this category experienced the most price increase with 225 items, 57 items decreased and 14 items were unchanged as compared to services, semi-durable goods and durable goods”.
Source: https://www.thestar.com.my/business/2021/06/25/may-cpi-rises-44-on-year-below-forecast