Malaysia's inflation rate held steady at 2.0% in June 2024 maintaining the Consumer Price Index (CPI) at 133.0 points compared to 130.4 points a year earlier.
The Department of Statistics Malaysia (DOSM) said this stability was influenced by increases in key sectors: Restaurant & Accommodation Services (3.3%), Housing, Water, Electricity, Gas & Other Fuels (3.2%), Personal Care, Social Protection & Miscellaneous Goods & Services (2.8%), and Food & Beverages (2.0%).
Notably, Clothing & Footwear and Insurance & Financial Services saw slight declines of 0.1%.
Chief Statistician Malaysia, Dato' Sri Dr. Mohd Uzir Mahidin said today, in DOSM's Consumer Price Index, June 2024 released that inflation for Restaurant & Accommodation Services increased to 3.3 per cent (May 2024: 3.2%). This was due to the increase in the main subgroup of Beverage preparation services to 4.2 per cent (May 2024: 4.1%).
Meanwhile, the inflation for Housing, Water, Electricity, Gas & Other Fuels increased at the same rate as the previous month at 3.2 per cent. The increase was mainly contributed by the subgroup of Water supply & miscellaneous services relating to dwelling, 32.1 per cent (May 2024: 32.1%).
Inflation for Personal Care, Social Protection & Miscellaneous Goods & Services increased by 2.8 per cent in June 2024 as against to 3.0 per cent in May 2024. The incline was contributed by the expenditure class of Jewellery & watches at 15.3 per cent (May 2024: 16.5%).
The Food & Beverages group which contributes 29.8 per cent of the total CPI weight recorded an increase of 2.0 per cent in June 2024 (May 2024: 1.8%).
The main subgroup of Food at home increased 0.9 per cent in June 2024 as compared to 0.5 per cent in the previous month. The expenditure class of Vegetables recorded the highest increase of 6.2 per cent (May 2024: 4.8%). Among the vegetables that recorded a double digit increase were Long Beans, Capsicum and Cucumber.
Inflation for the expenditure class of Meat edged up to 0.2 per cent in June 2024 (May 2024: -0.3%). Chicken as the largest component comprised 32.6 per cent in the expenditure class of Meat returned to positive territory at 1.1 per cent (May 2024: -0.8%).
Based on data collected by DOSM, the average price of Standard chicken in Malaysia for June 2024 was RM10.58 per kilogramme as compared to RM10.54 per kilogramme in June 2023 (May 2024: RM10.42), while, the average price of Standard chicken in Peninsular Malaysia for June 2024 was RM9.92 per kilogramme as compared to RM9.93 per kilogramme in June 2023 (May 2024: RM9.71). The main subgroup of Food away from home showed a slower increase of 3.3 per cent as compared to 3.4 per cent in the previous month. Among the items that recorded a lower increase as compared to the preceding month were Roti canai and Cooked chicken.
The rise in inflation within these sectors was attributed to various factors, including higher costs in specific subgroups like Beverage preparation services, Water supply services, and items such as Jewellery & watches and Food at home.
Regionally, while most states in Malaysia reported inflation rates below the national average, states like Pulau Pinang (3.3%), Sarawak (2.7%), Pahang (2.7%), and Selangor (2.4%) exceeded the national inflation rate of 2.0%. Increases in the inflation of Food & Beverages were observed across all states, with Selangor recording the highest at 3.3%.
Looking at a monthly perspective, June 2024 saw a slight increase in inflation by 0.2%, driven primarily by higher costs in Transport (0.5%), Restaurant & Accommodation Services (0.3%), and Recreation, Sport & Culture (0.3%). On a quarterly basis, Malaysia's inflation in the second quarter of 2024 rose by 1.9%, slightly higher than the first quarter.
Compared to selected countries, Malaysia's inflation rate of 2.0% was lower than that of Vietnam (4.3%), Philippines (3.7%), Indonesia (2.5%), and Republic of Korea (2.4%), but higher than Thailand (0.6%) and China (0.2%).
Overall, Malaysia's inflation in June 2024 reflected a balanced yet varied increase across different economic sectors and regions, influenced by both domestic factors and global economic conditions.