The nation’s headline inflation, as measured by the annual percentage change in the Consumer Price Index (CPI), increased to 2.8% during the Second Quarter (2Q) of 2022. The rate increased from 2,2% in the earlier quarter.
Bank Negara Malaysia, in its latest BNM Quarterly Bulletin released today, stated the rate increase reflected higher core inflation and higher fuel and price-volatile inflation.
Elevated cost pressures amid the ongoing military conflict in Ukraine, adverse weather conditions in key food-exporting countries and the stronger US dollar were all key contributing factors to this.
Core inflation rose to 2.5% (1Q 2022: 1.7%) given the improvement in demand conditions amid the high-cost environment.
The increase was predominantly driven by food away from home (2Q 2022: 5.3%; 1Q 2022: 3.6%) and other food items.
Some discretionary items (e.g., accommodation services) have also recorded higher inflation. Correspondingly, price pressures continued to be pervasive throughout the quarter.
The share of CPI items recording monthly price increases averaged higher at 63.2% (1Q 2022: 57%; 2011-2019 average: 45%).
