KUALA LUMPUR (Aug 29): Malaysia’s inflation, as measured by the consumer price index (CPI), increased 4.4% year-on-year (y-o-y) in July 2022 as the CPI's food and non-alcoholic beverage component remained as the main contributor to inflation, the Department of Statistics Malaysia (DOSM) said on Monday (Aug 29).

"The inflation for the period of January to July 2022 increased 2.8% as compared to the same period of the previous year. On a monthly basis, the (July 2022) inflation increased 0.4% as compared to June 2022," the DOSM said in a statement.

July 2022's 4.4% y-o-y inflation accelerated from June 2022's 3.4% y-o-y CPI rise, according to the DOSM.

"[In July 2022,] the food (and non-alcoholic beverage) index increased 6.9% [y-o-y] and remained as the main contributor to the rise in the inflation of this month. However, there are food items that showed a slower growth momentum as compared to June 2022. Among the subgroups were fish and seafood (4.2%) and vegetables (7.1%).

"The increase in Malaysia’s inflation this month was also due to the lower base effect last year as a result of the electricity bill discount from 5% to 40% according to total usage given to domestic consumers under the National People's Well-being and Economic Recovery Package (Pemulih) from July to September 2021," the DOSM said.

For July 2022, apart from the food and non-alcoholic beverage group, all other groups within the CPI also continued to record y-o-y increases except for the communication segment, which remained unchanged, according to the DOSM.

"Restaurants and hotels increased 5.8% followed by transport (5.6%); furnishings, household equipment and routine household maintenance (4%); and housing, water, electricity, gas and other fuels (3.8%).

"Meanwhile, recreation services and culture also registered an increase of 2.5%, miscellaneous goods and services (2.1%) and education (1.2%)," the DOSM said.

Meanwhile, Malaysia's July 2022 core inflation, which excludes food and energy prices, increased 3.4% y-o-y, according to the DOSM.

"Another gauge which measures the country's inflation without fuel grew 4.2% y-o-y," the DOSM said.