KUALA LUMPUR (June 25): Malaysia’s inflation, as measured by the Consumer Price Index (CPI), rose 4.4% year-on-year (y-o-y) in May 2021, underpinned by a lower base effect recorded from last year and a 26% increase in the index's transport segment, according to the Department of Statistics Malaysia (DOSM).
In a statement today, DOSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the 4.4% increase in the CPI was also driven by rises in the CPI segments including housing, water, electricity, gas and other fuels (3.2%), furnishings, household equipment and routine household maintenance (2.1%), and food and non-alcoholic beverages (1.5%).
The country’s May 2021 CPI, on a monthly basis, remained unchanged as compared to April 2021, while the CPI for the period of January to May 2021 increased 2.1% as compared to the same period last year, according to Mohd Uzir.
“The core index rose 0.8% in May 2021 as compared to the same month of the previous year.
“Eight states (sic), namely Terengganu (6.2%), Kelantan (5.6%), Pahang (5.1%), Kedah and Perlis (4.8%), Negeri Sembilan (4.7%), Johor (4.6%), Selangor and Wilayah Persekutuan Putrajaya (4.5%) and Perak (4.5%), surpassed the national CPI rate of 4.4% in May 2021 as compared to the same month of the previous year.
“All states registered an increase in the index of food and non-alcoholic beverages,” he said.
According to a report by the Food and Agriculture Organization (FAO), the global Food Price Index in May 2021 was at 127.1, increasing by 39.7% over the same month last year and 4.8% as compared to April 2021, Mohd Uzir added.
“The increase in the grain index was an effect of the drought in South America, which affected yields of corn and soybean crops as well as coffee and sugar. The highest demand by China exacerbated the grain supply pressure and increased producer costs of global livestocks.
“This situation was reflected in the increase in the food and non-alcoholic beverage group in Malaysia. However, the annual increase in May 2021 was lower than the previous month at 1.9%.
“This slow momentum was due to the implementation of price controls during the Festive Season Maximum Price Control Scheme (SHMMP) 2021 throughout May, which eased the inflation pressure on this group,” he stressed.
For May 2021, the chief statistician said the CPI without fuel increased 1.6% from a year earlier.
The CPI without fuel covers all goods and services except unleaded petrol RON95, RON97 and diesel, Mohd Uzir highlighted.