KUALA LUMPUR – The consumer price index (CPI) rose by 3.4% year-on-year (y-o-y) to 123.2 in June 2021 versus 119.1 in June 2020, said the Statistics Department.
In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said CPI remained positive for the fifth consecutive month since February this year due to the lower base effect last year as a result of the decline in fuel prices for private vehicles.
He said the transport group was the main contributor to the increase in the headline inflation at 16.6%, followed by housing, water, electricity, gas and other fuels (3.2%); furnishings, household equipment and routine household maintenance (2.0%), and food and non-alcoholic beverages (1.3%).
On a monthly basis, the CPI increased by 0.1% as compared to May 2021, attributed by food and non-alcoholic beverages (0.3%) and miscellaneous goods and services (0.1%).
“This slow momentum was due to the implementation of the movement control order (MCO) 3.0 and closure of operations for non-essential sectors throughout June 2021 had eased the inflation pressures,” Uzir said.
Meanwhile, the CPI for the second quarter of 2021 climbed 4.1% to 123.1 compared with 118.2 in the same quarter of the preceding year, and on a quarterly basis, the CPI increased 0.5% against the first quarter of 2021.
Citing the Food and Agriculture Organisation, he said global food prices increased at a rapid rate over the past decade and are exacerbated by the problems of countries around the world that are still struggling to deal with the spread of the Covid-19 pandemic.
Additionally, the increase in the prices of some of the world’s major commodities due to lack of supply and rising shipping costs contributed to the increase in the index of food and non-alcoholic beverages.
The double-digit increase in the blended cooking oil index for the second consecutive month since May 2021 proved that Malaysia is also experiencing the pinch of the global price hike, he said.
“Core index rose 0.7% in June 2021 compared with the same month in 2020, supported by the increase in housing, water, electricity, gas and other fuels (3.2%), furnishings, household equipment and routine household maintenance (2.0%), food and non-alcoholic beverages (1.3%), and transport (1.0%).
“The recreation services and culture (0.6%), health (0.5%), education (0.5%), restaurants and hotels (0.5%), and miscellaneous goods and services (0.3%) also contributed to the rise in the core index, which excludes most volatile items of fresh food as well as administered prices of goods and services,” he added.
Uzir said the CPI without fuel increased 1.5% in June 2021 to 113.9 compared with 112.2 in the same month of the preceding year, which covers all goods and services except unleaded petrol RON95, unleaded petrol RON97 and diesel.
“Seven states namely Terengganu (4.4%), Kelantan (4.1%), Pahang (3.9%), Perak (3.6%), Selangor and the Federal Territory (FT) of Putrajaya (3.5%), Negeri Sembilan (3.5%), and Kedah and Perlis (3.5%) surpassed the national CPI rate of 3.4% in June 2021 versus the same month in 2020.
“All states registered an increase in the index of food and non-alcoholic beverages, while the highest increase was recorded by Terengganu at 2.0%, followed by Selangor and FT Putrajaya (1.9%), Kelantan (1.7%) and FT Kuala Lumpur (1.4%),” he said. – Bernama, July 23, 2021
