Stats Dept: Malaysia’s inflation eases to 2.8pc in May 2023 

KUALA LUMPUR, June 23 — Malaysia’s inflation eased further in May 2023 with the consumer price index (CPI) slowing to 2.8 per cent from 3.3 per cent in the previous month, said the Department of Statistics Malaysia (DoSM).

In a statement today, it said the easing inflation was mainly contributed by the fall in food and non-alcoholic beverages index which dropped to 5.9 per cent from 6.3 per cent in April 2023; the transport index which declined to one per cent from 2.3 per cent in April 2023; and furnishings, household equipment and routine household maintenance index which slid to 2.7 per cent from three per cent previously.

Nonetheless, it said the inflation was driven by the higher restaurants and hotels index which grew to 6.7 per cent from 6.6 per cent in April 2023.

“The weight for the food and non-alcoholic beverages group (29.5 per cent), transport (14.6 per cent) and restaurants and hotels (2.9 per cent) constituted 47.0 per cent 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 per cent inflation rate in Malaysia was lower than that in the Eurozone (6.1 per cent), the United States (four per cent), the Philippines (6.1 per cent), Indonesia (four per cent), and South Korea (3.3 per cent).

For inflation at the state level, it said seven states recorded increases above the 2.8 per cent national inflation level, namely Sarawak (3.5 per cent), Selangor (3.3 per cent), Perak (3.2 per cent), Putrajaya (3.1 per cent), Pahang (3.1 per cent), Melaka (3.1 per cent), and Sabah (3.0 per cent).

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 per cent in May 2023 from 3.6 per cent in April 2023.

The growth was mainly contributed by food and non-alcoholic beverages group which was at 7.1 per cent against 7.2 per cent in April 2023, as well as the restaurants and hotels index which rose to 6.7 per cent from 6.6 per cent in the previous month. — Bernama