Higher transport and food and beverage prices push CPI up 2.7% in January 2018

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PETALING JAYA: The overall index for Consumer Price Index (CPI) increased by 2.7% in January 2018 as compared to the corresponding month of the preceding year, on higher prices in ten main groups, in particular transport, which went up by 5.7%, and food and non-alcoholic beverage, which went up 3.8%.

Four states surpassed the national CPI rate of 2.7% recorded in January 2018 as compared to January 2017, namely Melaka (+3.0%), Johor (+2.9%), Selangor & Wilayah Persekutuan Putrajaya (+2.9%) and Negeri Sembilan (+2.8%).

Meanwhile, the higher increase in the index for food & non-alcoholic beverages was reflected in most states in Malaysia.

The overall index for food & non-alcoholic beverages which accounted 29.5% in the CPI weights, increased 3.8% in January 2018, driven by food sub-group index which comprised of vegetables (+7.6%), fish & seafood (+5.0%), milk & eggs (+2.5%), fruits (+2.2%) and sugar, jam, honey, chocolate & confectionery (+2.2%). As for food away from home index, it continued to rise in January 2018, an increase of 4.9%.

Five states recorded higher increases for food & non-alcoholic beverages index above the national index level (+3.8%) for
January 2018 as compared with the corresponding month in 2017.

The index for food & non-alcoholic beverages rose 5.4% in Wilayah Persekutuan Kuala Lumpur, 4.2% in Melaka, 4.2% in Selangor & Wilayah Persekutuan Putrajaya, 4.2% di Sabah & Wilayah Persekutuan Labuan and 4.0% in Johor.

Furnishings, household equipment & routine household maintenance (+2.6%), restaurants and hotels (+2.4%), health (+2.3%), housing, water, electricity, gas & other Fuels (+2.2%), education (+1.2%), miscellaneous goods & services (+0.9%), recreation services & culture (+0.5%) and alcoholic beverages & tobacco (+0.2%).

On a monthly basis, CPI rose by 0.3% as compared to December 2017.

Commencing January 2018, the Malaysia’s Consumer Price Index using the basket of goods and services that has been updated based on the Household Expenditure Survey 2016. The new basket comprises 552 items to ensure the statistics reflect the current patterns in consumer expenditure.

Core inflation rose 2.2% in January 2018 as compared with the same month of the previous year, on increases of Food & Non-Alcoholic Beverages (+3.5%), Furnishings, Household Equipment & Routine Household Maintenance (+2.6%), Housing, Water, Electricity, Gas & Other Fuels (+2.5%), Restaurants & Hotels (+2.4%), Health (+2.3%) and Transport (+2.0%).

Core inflation differs from overall CPI (headline CPI) where the former is calculated by excluding prices for goods and services that are subject to fluctuations which considered transitory in nature and do not have a lasting impact on the underlying trend in inflation. These include nine of the CPI’s most volatile items of fresh food, as well as administered prices of goods and services.

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