Business

Malaysia’s CPI rises 2.8% in May 2022

Chicken as largest subgroup of meat went up 13.4% compared to 7.5% last month

Updated 4 years ago · Published on 24 Jun 2022 3:08PM

Malaysia’s CPI rises 2.8% in May 2022
The average price of chicken in May 2022 was RM9.70 per kg against RM8.44 in May 2021. – The Vibes file pic, June 24, 2022

KUALA LUMPUR – Malaysia’s Consumer Price Index (CPI) increased 2.8% year-on-year (y-o-y) to 126.6 in May 2022 from 123.1 in May 2021, according to the Malaysia Statistics Department (DoSM).

The department said the increase surpassed the average inflation in Malaysia for the January 2011 to May 2022 period (1.9%).

Chief statistician Datuk Sri Mohd Uzir Mahidin said food inflation continued to rise to a new high at 5.2% – highest since November 2011 – with 93% of items in the group recording increases.

“Out of the items, 29.4% recorded increases in the range of less than 5%, 37.7% saw increases of between 5 and 10%, while 32.9% rose by more than 10%," he said in a statement today.

Transport increased by 3.9% followed by restaurants and hotels (3.7%), furnishings, household equipment and routine household maintenance (2.9%), miscellaneous goods and services (1.9%), and recreation services and culture (1.8%).

Meanwhile, housing, water, electricity, gas and other fuels, registered an increase of 1.2%, while education climbed 1%.

Both alcoholic beverages and tobacco, as well as health, inclined marginally by 0.4% while the communications group remained unchanged from the same period of the preceding year.

Uzir said, in May 2022, food at home and food away from home inclined 5.5% (April 2022: 4.1%) and 5.1% (April 2022: 4.4%), respectively, leading to an increase in food inflation.

“The subgroup of meat showed the highest increase of 9.5% in May 2022 (April 2022: 6.2%) due to the increase in demand during the festive season, followed by vegetables (8.1%), milk, cheese and eggs (8.0%), fish and seafood (4.3%), and oils and fats (3.7%).

“Meanwhile, a significant increase for food away from home can be seen for rice with side dishes (8.3%), roti canai (7.8%), food made from noodles (5.7%), and cooked chicken (5.1%),” he added.

He said the rising cost of feed coupled with an increase in demand contributed to the increase in chicken price this time around.

“Chicken as the largest component in the subgroup of meat (46.1%) went up 13.4% as compared to 7.5% in April 2022, while the average price of chicken in May 2022 was RM9.70 per kg against RM8.44 in May 2021.

“The surge in vegetable prices in the market at the moment was mainly attributed to the rising of fertiliser prices, logistics costs, labour shortage, and weather conditions,” he said.

According to the report, the increase in the transport group was largely due to the increase in the average price of RON97 unleaded petrol by 63.8% (RM4.26 per litre) versus RM2.60 in May 2021.

The increase in fuel prices was a direct impact on the increase in the price of Brent crude oil (65.2%) to US$112.37 (US$1=RM4.41) per barrel in May 2022.

“Nevertheless, the implementation of subsidy prices of RON95 petrol and diesel has eased the inflation in this group, while the RON95 unleaded petrol remained unchanged at RM2.05 per litre since March 2021,” it said.

Commenting on the inflation at the state level, Uzir said the highest increase was recorded by Selangor and the Putrajaya Federal Territory (3.7%).

Kedah and Perlis (up 2.2%), Sabah and the Labuan Federal Territory (2.2%) and Melaka (2.1%) were the three states with the lowest increase in inflation.

“All states registered an increase in the inflation in food and non-alcoholic beverages, with Selangor and Putrajaya posted the highest increase of 6.7%, followed by Johor (6%), Penang (5.8%), and Perak (5.2%).

“Meanwhile, inflation for the income group below RM3,000 increased 2.9% from 123.6 in May 2021 to 127.2 in May 2022, contributed by a 5.4% increase in the food and non-alcoholic beverages group, up 0.2 percentage point than the national food inflation.

“The increases were from the subgroup of meat (9.4%), followed by milk, cheese and eggs (nine%) and vegetables (7.5%),” he added. – Bernama, June 24, 2022

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