The Department of Statistics, Malaysia (DOSM) today (April 20) released the Consumer Price Index (CPI), March 2023 which shows that the Consumer Price Index of March 2023 easing to 3.4 per cent with the index point recorded at 129.9 as against 125.6 in the same month of the previous year.
In a statement today, Dato’ Sri Dr. Mohd Uzir Mahidin, the Chief Statistician Malaysia said, “The slower increase in Malaysia’s inflation for March 2023 was mainly driven by the decrease in the price of Unleaded petrol RON97, which eased the inflation of the Transport group to 2.4 per cent.
This was in line with the downward trend of Brent crude oil price, which was at $US78.53 per barrel during March 2023 (March 2022: $US115.59).
Nevertheless, inflation for Food & Non-Alcoholic Beverages (6.9%) and Restaurants & Hotels (7.2%) remained high even though it was lower than February 2023.”
The weight for the Food & Non-Alcoholic Beverages group (29.5%); Transport (14.6%) and Restaurants & Hotels (2.9%) comprise 47.0 per cent of the total weight for CPI which have a significant impact on the inflation rate and the cost of living.
Apart from that, the increase in Malaysia’s inflation in March 2023 was also due to Furnishings, Household Equipment & Routine Household Maintenance (3.1%); Health (2.2%) and Miscellaneous Goods & Services (2.1%). This was followed by Recreation Services & Culture (1.9%); Education (1.7%); Housing, Water, Electricity, Gas & Other Fuels (1.6%); Alcoholic Beverages & Tobacco (0.6%) and Clothing & Footwear (0.5%). Meanwhile, Communication group recorded negative 1.4 per cent.”
Mohd Uzir added, “Inflation for Restaurants & Hotels group increased at a slower pace of 7.2 per cent in March 2023 as compared to 7.4 per cent recorded in February 2023. The price rise in the Accommodation services subgroup 7.7 per cent (February 2023: 7.8%) and Expenditure in restaurants & cafés 7.0 per cent as against 7.3 per cent in February 2023 were the main factors for the moderate increase of this group. Food & Non-Alcoholic Beverages group which contributes 29.5 per cent of total CPI recorded a moderate increase of 6.9 per cent (February 2023: 7.0%). Out of 230 items for Food & Beverages items, 201 items (87.4%) recorded price increases as compared to March 2022.”
The Food at home component moderated to 5.6 per cent in March 2023 as compared to 5.8 per cent recorded in previous month.
Subgroup of Meat which consists of Chicken, Beef, Pork, Lamb, Buffalo and Duck registered an increase of 9.2 per cent in March 2023 (February 2023: 9.0%). Chicken (46.1%), which was the main component in the subgroup of Meat recorded an increase of 8.7 per cent as compared to 8.0 per cent in February 2023. The average price of Standard chicken in Peninsular Malaysia increased to RM9.86 per kilogramme as compared to RM8.93 in March 2022 (February 2023: RM9.76).
Meanwhile, the average price for Standard chicken at Malaysia level increase to RM10.40 per kilogramme as compared to RM9.47 per kilogramme in March 2022 (February 2023: RM10.33).
In addition, the increase in this subgroup was also driven by the increase in Pork (30.7%) and Duck (10.8%). On a monthly basis, Fresh meat subgroup increased 0.5 per cent, contributed by an increase in Pork (1.0%), followed by Duck (0.8%) and Chicken (0.7%). In addition, the implementation of The Festive Season Maximum Price Control Scheme for (SHMMP) for the period of 16 days starting 15th to 30th April 2023 is expected to ease the burden for some consumers in celebrating Aidilfitri.
Meanwhile, the subgroup of Milk, cheese & eggs edged up 7.1 per cent in March 2023 (February 2023: 6.6%). Chicken eggs which contributed 22.8 per cent weight to this subgroup increased albeit at a slower pace of 4.4 per cent in March 2023 (February 2023: 4.5%).
The supply of chicken eggs was stable and able to meet consumer demand throughout the Ramadan and Aidilfitri celebration.
The increase of subsidies by the government last year has encouraged poultry farming while the slower demand after Chinese New Year has also contributed to the stability of eggs supply.
Meanwhile, Evaporated milk and Sweetened condensed milk recorded a double-digit increase of 15.9 per cent and 13.5 per cent respectively in March 2023.
The subgroup of Rice, bread & other cereal increased 6.9 per cent in March 2023 (February 2023: 6.7%). Wheat flour still recorded a double-digit increase at 25.7 per cent (February 2023: 28.5%) due to the increase in global price of wheat.
Some of the wheat flour-based items that recorded the slower increases were Wet noodles 19.5 per cent (February 2023: 20.5%) and Bread 7.6 per cent (February 2023: 7.7%).
The subgroup of Oils & fats continued to ease since July 2022 (4.6%) to 0.1 per cent in March 2023 (February 2023: 0.6%). The slower increase was due to the maximum retail price of bottled cooking oil for one to five kilogrammes that remained unchanged since November 2022.
The inflation for Vegetables eased in March 2023 to 3.4 per cent as compared to 5.8 per cent in February 2023. On a monthly basis, Vegetables declined to negative 2.7 per cent as compared to 2.8 per cent in the previous month.
Better weather conditions and improved local production were the reasons for the decline in most vegetable prices.
Among the vegetables which recorded a month-on-month decrease were Cucumber (-12.9%) with an average price of RM4.31 per kilogramme (February 2023: RM5.20), French beans (-12.8%) with an average price of RM12.40 per kilogramme (February 2023: RM14.03), Lady’s finger (-9.5%) with an average price of RM10.60 per kilogramme (February 2023: RM11.66) and Angle gourd (-7.1%) with an average price of RM6.72 per kilogramme (February 2023: RM7.38).
Meanwhile, some vegetables recorded a slower increase year-on-year include Long beans (7.1%) with an average price of RM8.53 per kilogramme (March 2022: RM7.53), Cauliflower (2.8%) with an average price of RM10.51 per kilogramme (March 2022: RM9.94), Kangkung (1.8%) with an average price of RM5.60 per kilogramme (March 2022: RM5.35) and Green spinach (1.7%) with an average price of RM6.18 per kilogramme (March 2022: RM5.63). In line with the moderate increase in the Food at home component, Food away from home component also eased to 8.6 per cent (February 2023: 8.9%).
Among the Food away from home that recorded a slower increase were Fried chicken (9.2%) (February 2023: 9.9%); Rice with side dishes (8.6%) (February 2023: 9.1%); Fried rice (8.5%) (February 2023: 9.2%) and Chicken rice (7.4%) (February 2023: 7.8%).
Inflation for Transport recorded a slower increase at 2.4 per cent in March 2023 as compared to 3.7 per cent in February 2023. Among the factor that contributed to the moderate increase in Transport was the setting of the price of Unleaded petrol RON97 in March 2023 (RM3.35 per litre) as against March 2022 (RM3.73 per litre).
In addition, the Repair & maintenance of personal transport subgroup also recorded a slower increase in March 2023 at 10.5 per cent as compared to 10.7 per cent in the previous month.
Commenting on the inflation at the state level, Chief Statistician Malaysia elaborated that nine states recorded increases below the national inflation level of 3.4 per cent with Kedah recorded the lowest increase of 2.1 per cent.
However, only six states recorded increases above the national inflation level namely Wilayah Persekutuan Putrajaya (4.5%), Selangor (4.0%), Sarawak (3.8%), Johor (3.7%), Pahang (3.7%) and Perak (3.6%). All states registered an increase in the inflation of Food & Non-Alcoholic Beverages. The highest increase was recorded by Selangor (8.3%), followed by Sarawak (8.2%), Wilayah Persekutuan Putrajaya (7.3%), Johor (6.9%) and Pahang (6.9%).
Meanwhile, other states showed an increase below the national inflation of Food & Non-Alcoholic Beverages rate of 6.9 per cent in March 2023. Meanwhile, the inflation for the income group below RM3,000 increased 3.6 per cent from 126.2 in March 2022 to 130.8 in March 2023.
The increase was attributed by Food & Non-Alcoholic Beverages group at 6.4 per cent and was mainly recorded for subgroup of Meat (9.8%), followed by Milk, cheese & eggs (6.5%) and Rice, bread & other cereals (6.3%). In addition, the inflation for Restaurants & Hotels also went up 7.4 per cent, followed by Furnishings, Household Equipment & Routine Household Maintenance (3.6%); Health (2.2%); Transport (1.8%) and Housing, Water, Electricity, Gas & Other Fuels (1.7%).
The CPI for the first quarter of 2023 inclined 3.6 per cent as compared to the same quarter of the preceding year. On a quarterly basis, CPI grew at 0.6 per cent at the same rate as recorded in the fourth quarter of 2022. Core inflation which measures changes in the prices of all goods and services, excluding volatile prices of fresh food as well as administered prices of goods by the government still registered a higher increase of 3.8 per cent (February 2023: 3.9%).
The increase was mainly due to the Embargo: Only to be published or disseminated at 1200 hour, Thursday, 20 April 2023 Food & Non-Alcoholic Beverages that recorded 7.5 per cent.
In addition, the Restaurants & Hotels group also recorded an increase of 7.2 per cent, followed by Transport (5.7%). A monthly headline inflation in March 2023 increased marginally at 0.1 per cent as compared to February 2023.
This was mainly contributed by Restaurants & Hotels (0.3%), while Furnishings, Household Equipment & Routine Household Maintenance; Education and Miscellaneous Goods & Services increased 0.2 per cent respectively.
Commenting on inflation of other countries, Mohd Uzir said: “The Eurozone inflation eased to 6.9 per cent in March 2023 from 8.5 per cent in the previous month. The slower increase was mainly due to the slowing down of Energy inflation at 0.9 per cent (February 2023: 13.7%).
Nevertheless, Food, alcohol & tobacco (15.4%) and Services (5.0%) showed a higher inflation rate as compared to February 2023.
The inflation rate in the United States of America eased to 5.0 per cent in March 2023 as against in February 2023 (6.0%). Energy prices fell 6.4 per cent (February 2023: 5.2%) due to the decrease in gasoline (-17.4%) and fuel oil (-14.2%).
Besides, food prices also showed a slower increase at 8.5 per cent as against 9.5 per cent in the previous month. In comparison to selected countries in the Asia Pacific region, the inflation rate in Malaysia (3.4%) was lower than the inflation in Republic of Korea, Indonesia and Philippines.
On another note, the Department of Statistics Malaysia (DOSM) is conducting the Economic Census in 2023. DOSM greatly appreciates the cooperation of respondents to provide information to DOSM and in making this census a success. Please visit www.dosm.gov.my for more information.
