Malaysia’s inflation eases to 2.8% in May 2023

KUALA LUMPUR – Malaysia’s inflation eased further in May 2023 with the consumer price index (CPI) slowing to 2.8% from 3.3% in the previous month, said the Statistics Department.

In a statement today, it said the easing inflation was mainly contributed by the fall in food and non-alcoholic beverages index to 5.9% from 6.3% in April 2023; the transport index which declined to 1% from 2.3% in April 2023; and furnishings, household equipment, and routine household maintenance index which slid to 2.7% from 3% previously.

Nonetheless, it said the inflation was driven by the higher restaurants and hotels index which grew to 6.7% from 6.6% in April 2023.

“The weight for the food and non-alcoholic beverages group (29.5%), transport (14.6%), and restaurants and hotels (2.9%) constituted 47.0% of the total weight for the CPI, which have a significant impact on the inflation rate and the cost of living,” the department said.

In comparison to selected countries in May 2023, DoSM said the 2.8% inflation rate in Malaysia was lower than that in the Eurozone (6.1%), the United States (4%), the Philippines (6.1%), Indonesia (4%), and South Korea (3.3%).

For inflation at the state level, it said seven states recorded increases above the 2.8% national inflation level, namely Sarawak (3.5%), Selangor (3.3%), Perak (3.2%), Putrajaya (3.1%), Pahang (3.1%), Melaka (3.1%), and Sabah (3.0%).

On core inflation, which measures changes in the prices of all goods and services, excluding volatile prices of fresh food as well as administered prices of goods by the government, the department said it also eased to 3.5% in May 2023 from 3.6% in April 2023.

The growth was mainly contributed by the food and non-alcoholic beverages group at 7.1% against 7.2% in April 2023, as well as the restaurants and hotels index which rose to 6.7% from 6.6% in the previous month. – Bernama, June 23, 2023