KUALA LUMPUR (June 19): Malaysia’s inflation in May accelerated to the fastest in nearly two years as the increase in prices of food gained speed, official data on Friday showed.

The consumer price index, the country’s main gauge of inflation, rose 2% in May from a year earlier, the Department of Statistics Malaysia said in a statement. The rate is the highest since July 2024 but is lower than the median 2.1% year-on-year predicted in a Bloomberg poll of economists.

On a seasonally-adjusted basis, the index was up 0.1% month-on-month in May.

Inflation in Malaysia has remained relatively more benign than in many other Asian countries while oil prices have begun moderating as geopolitical conflict in the Middle East eased following a temporary truce between the US and Iran.

Targeted subsidies and price controls on essential goods have partially shielded the average Malaysians against spikes in prices of global commodities.

Core inflation — a measure of underlying inflation by stripping out volatile prices of items such as fresh food, as well as administered prices of goods — was stable at 2.0% in May.

The food and beverage index, which accounts for about 30% of the index’ weightage, climbed 1.4% year-on-year in May compared to the 1.2% rise in April. Food-at-home inflation picked up while the price gain was marginally lower for food away from home that covers meals such as in restaurants.

During the month, the category that covered housing, water, electricity, gas and other fuels saw a slightly higher inflation rate of 1.2% mainly due to maintenance, repair and security.

Inflation for the transport group, meanwhile, moderated to 3.8% in May from 4.1% in April thanks to slower gain of public transport services and operation of personal transport equipment while transport services of goods and purchase of vehicles both contracted.