Business

Malaysia’s inflation eases to 2.8% in May 2023

Slowdown mainly contributed by fall in food, non-alcoholic beverages index, says DoSM

Updated 3 years ago · Published on 23 Jun 2023 2:09PM

Malaysia’s inflation eases to 2.8% in May 2023
Malaysia’s ease in inflation is 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. – SAIRIEN NAFIS/The Vibes file pic, June 23, 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

Related News

Malaysia / 1mth

Strong growth, controlled inflation push OPR to remain at 2.75%

Malaysia / 1mth

Higher BUDI fuel quotas may help ease inflation, economist says

Business / 2mth

Traders keep watch on inflation data as energy prices fuel fresh concerns

Malaysia / 3mth

DOSM: May unemployment rate remains at 3 per cent

Malaysia / 4mth

Selangor still Malaysia’s top economic engine, DOSM data counters political claims

Business / 5mth

BMI sees BNM holding OPR at 2.75% in July, amid contained inflation

Spotlight

Malaysia

Haze: Schools in Johor, Melaka, and Negeri Sembilan to close tomorrow

Malaysia

Tun Mahathir’s health improves, but not ready to leave hospital

Malaysia

LPT3 row puts Kelantan’s infrastructure priorities under scrutiny

Malaysia

Terengganu royal family member sues two banks over RM1.99m missing from savings

Malaysia

Irene Sofiya murder probe referred to Johor prosecutors for review

Malaysia

Teacher denies negligence charges over fatal school SUV crash in Kota Bharu

Malaysia

Sulaiman Md Ali opts out of Melaka polls, will not defend Lendu

You may be interested

Business

Oil prices rise as Gulf attacks threaten supply recovery

Business

SC targets stronger board oversight through higher standards for company secretaries

Business

Oil prices stay above US$93 as Middle East tensions put pressure on ringgit

Business

SC plans new co-investment fund in 2027 to unlock growth capital for Malaysian businesses