KUALA LUMPUR – Malaysia’s inflation rate climbed to 2.0% in May, compared to a 1.8% hike in April.
This was driven by price increases in the main groups of housing, water, electricity, gas and other fuels of 3.2% and another 3.2% hike in restaurant and accommodation services.
Increases were also recorded in education at 1.5%; transport (0.9%); personal care, social protection and miscellaneous goods and services (3.0%); health (2.2%); recreation, sport and culture (1.9%) as well as food and beverages (1.8%), the Statistics Department (DoSM) said today.
Clothing and footwear, as well as insurance and financial services, declined 0.2% and 0.1%, respectively.
“The monthly headline inflation in May 2024 recorded an increase of 0.3% against April 2024 (0.2%). This was mainly driven by housing, water, electricity, gas and other fuels as well as information and communication, which increased by 0.6%, respectively.
“This was followed by food and beverages; restaurant and accommodation services; recreation, sport and culture; and education, which increased by 0.3%, respectively, compared to the previous month,” DoSM said.
However, it said the prices of furnishings, household equipment and routine household maintenance, along with health, insurance and financial services, did not register any increase and thus, to a certain extent, offset the increase in inflation.
Core inflation, which measures changes in the prices of all goods and services, excluding prices of fresh food and administered prices of goods by the government, increased by 1.9% in May 2024, the same rate as recorded in April 2024.
DoSM said the increase was mainly driven by restaurant and accommodation services as well as personal care, social protection and miscellaneous goods and services, which went up 3.3% and 3.0%, respectively.
“Inflation without fuel inclined to 1.9% in May 2024 to 123.1 compared to 120.8 in the same month of the preceding year. Inflation without fuel covers all goods and services except unleaded petrol RON95, unleaded petrol RON97 and diesel,” it said.
DoSM said the inflation rate in Malaysia was lower than in South Korea, Indonesia and the Philippines.
“The inflation rate of South Korea recorded a lower increase of 2.7% in May, while in Indonesia, it increased by 2.8% from 3.0% in April,” it noted.
Inflation in the Philippines rose to 3.9% compared to 3.8% in the previous month, while prices in Thailand expanded by 1.5% last month. – June 25, 2024
