Higher meat, vegetables prices push up July inflation

KUALA LUMPUR: Malaysia’s inflation rate, which is measured by the Consumer Price Index (CPI), rose 1.1% on-year, as prices of meat, vegetables and fish rose.

The Statistics Department said on Wednesday that core inflation, which excludes most volatile items of fresh food, as well as administered prices of goods and services rose 2% in July 2016 compared to a year ago.

It said CPI for July rose 1.1% to 115.1 compared with 113.9 a year ago, which was slower than the 1.2% increase forecast.

Among the major groups which recorded increases were the index for food & non-alcoholic beverages, up 3.8% on-year (this group has a weightage of 30.2 in the CPI) and alcoholic beverages and tobacco, which rose by 19.9%.

As for food, it said the increase was due to four food sub-groups index for meat (+7.0%); vegetables (+6.3%); fish & seafood (+6%) and fruits (+4.5%). However, the index for non-food fell 0.2%.

On a monthly basis, CPI for July 2016 increased 0.3% to 115.1 from 114.8. Of the 12 major groups, nine recorded increases included transport; recreation services & culture; miscellaneous goods & services; food & non-alcoholic beverages.

CPI for January to July 2016 rose 2.4% as compared to the previous corresponding period. The increase was led by  main groups with high expenditure percentages: food & non-alcoholic beverages (+4.3%) and housing, water, electricity, gas & other Fuels (+2.7%).

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