Malaysia July inflation rate eases to 3.2pc y/y, just below forecast

Marco Green
August 23, 2017

The consumer-price index rose 3.2% from a year earlier, according to the Department of Statistics, compared with a 3.6% year-over-year increase in June.

July's inflation was driven mainly by higher year-over-year costs for transportation, food and non-alcoholic beverages, the Department of Statistics said.

Meanwhile, CPI for the period of January to July 2017 registered a 4% rise compared with the same period a year ago.

The average price of a litre of RON95 petrol was RM1.96 in July 2017 compared to RM1.75 in July 2016 while for RON97, the average price increased to RM2.21 in July 2017 compared to RM2.10 previously.

From January to July 2017, the CPI increased 4.0% compared with the same period a year ago, mainly due to an increase in the food and non-alcoholic beverages index, which rose 4.2%.

Fuels and lubricants for personal transport equipment accounted for 7.8% of the CPI weights.

Cooking oil recorded the one of the most notable increases in July with the 48.9 per cent increase followed by spinach (11.4 per cent), tomatoes (10.4 per cent), Indian mackerel (10.1 per cent) and choy sam vegetable (8.8 per cent).

Between January and July, CPI climbed 4% from a year earlier and in monthly terms, July CPI fell 0.1%, the Department added.

FXTM says headline inflation at significantly below the eight-year high of 5.1% seen in March likely signals that Malaysia has passed the market turbulence encountered by global markets as a whole before Donald Trump was inaugurated as United States president in January.

Other reports by Click Lancashire

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