Malaysia’s inflation rate unchanged at 2% in August 2023 – DoSM

KUALA LUMPUR — Malaysia’s inflation remained unchanged at 2% in August 2023, similar to the growth rate recorded in July 2023, said the Department of Statistics Malaysia (DoSM).

In a statement today, DoSM said the inflation rate recorded in August was mainly due to the slower growth in restaurants and hotels, which fell to 4.7% from 5% in July 2023; food and non-alcoholic beverages (4.1% against 4.4% in July 2023), as well as miscellaneous goods and services which moderated to 2.4% from 2.6% in the previous month.

It said the food and non-alcoholic beverages group contributes 29.5% of total consumer price index (CPI) weight.

Meanwhile, it said the inflation rate for the transport sector for August 2023 did not record any increase (0.0%) as compared to -0.4% in July 2023.

On core inflation, DoSM said it moderated to 2.5% in August 2023 versus 2.8% in July 2023, but it still surpassed the overall national inflation rate of two%.

“The highest increase was recorded by the food and non-alcoholic beverages group with a 5.1% increase, followed by the restaurants and hotels group which rose 4.7% and transport (up 3.6%).

“Meanwhile, miscellaneous goods and services, as well as health increased 2.4%, respectively,” it said.

Compared with other countries, DoSM said the inflation rate of two% in Malaysia was lower than that in the Eurozone (5.3%), the Philippines (5.3%), South Korea (3.4%), Indonesia (3.3%) and Vietnam (three%).

However, the rate was higher than Thailand (0.9%) and China (0.1%), it added.

At the state level, chief statistician Datuk Seri Mohd Uzir Mahidin said seven states recorded increases above the national inflation level of two%, namely Sarawak (3.4%), Putrajaya (2.7%), Perlis (2.4%), Perak (2.3%), Selangor (2.3%), Pahang (2.2%) and Melaka (2.1%), while the other nine states recorded growth below two%.

On a month-on-month basis, DoSM said the headline inflation in August 2023 increased marginally to 0.2% against 0.1% in July 2023.

The increase was mainly contributed by housing, water, electricity, gas and other fuels, which rose 0.5% from no changes in July 2023, as well as health, which increased 0.5% from 0.2% in July 2023. — BERNAMA