Malaysia’s inflation continues to increase at a slower rate of 1.5 per cent in November 2023 with the index points recorded at 130.9 as against 129.0 in the same month of the previous year. The Department of Statistics Malaysia (DOSM) reported today (Dec 22) on the release of Consumer Price Index (CPI), November 2023.
Chief Statistician Malaysia, Dato’ Sri Dr. Mohd Uzir Mahidin said, the increase in the inflation was driven by the lower increases in Restaurants & Hotels, 4.3 per cent (October 2023: 4.6%); Food & Non-Alcoholic Beverages group, 2.6 per cent (October 2023: 3.6%) and Health, 2.3 per cent (October 2023: 2.4%).
In addition, some of the other main groups that showed an increase were Housing, Water, Electricity, Gas & Other Fuels, 1.7 per cent (October 2023: 1.6%) and Transport, 0.1 per cent (October 2023: 0.0%).
Food & Non-Alcoholic Beverages group which contributes 29.5 per cent of total CPI weight recorded a moderate increase of 2.6 per cent. The component of Food at home increased 1.4 per cent as compared to 2.1 per cent recorded in the previous month.
The increase in the component of Food at home was mainly driven by the subgroup of Rice, bread & other cereals at 3.1 per cent (October 2023: 3.6%). This was followed by Milk, cheese & eggs and Fruits subgroups which inclined by 2.9 per cent and 2.8 per cent respectively.
Meanwhile, the component of Food away from home increased slower to 3.9 per cent as compared to 5.6 per cent registered in October 2023. Among the items that showed a slower increase in November 2023 was Fried chicken mainly due to the effect of the promotion strategy by fast food industry.
The increase in Rice, bread & other cereals subgroup by 3.1 per cent in November 2023 was contributed by the expenditure class of Rice which recorded a slower increase of 4.7 per cent as compared to 5.3 per cent in October 2023.
The imported rice and imported fragrant rice products increased by 10.1 per cent and 7.0 per cent respectively as compared to 9.6 per cent and 7.5 per cent in October 2023. The government is reviewing the proposal to increase the ceiling price of local white rice (BPT) from RM2.60 per kilogramme to RM3.20 per kilogramme to protect the future of all parties involved in the food production chain.
The inflation for Milk, cheese & eggs subgroup increased to 2.9 per cent in November 2023 (October 2023: 3.1%). The slower increase was recorded by the expenditure class of Evaporated/ condensed milk (1.9%), followed by Milk powder & other dairy products (4.0%) and Eggs (1.1%).
Meanwhile, the inflation for the subgroup of Fruits increased by 2.8 per cent in November 2023 (October 2023: 2.6%) was contributed by the increase in expenditure class of Fresh fruits (3.0%). Among the fruits that recorded increases were Oranges, Pear and Watermelon.
The subgroup of Meat which consists of Chicken, Beef, Pork, Lamb, Buffalo and Duck recorded a decline to negative 0.2 per cent in November 2023 (October 2023: 2.1%) the lowest since August 2021. On a monthly comparison this subgroup also recorded a marginal decline to negative 0.5 per cent (October 2023: 0.1%).
Chicken as the largest component comprised 46.1 per cent in the subgroup of Meat recorded a decline by negative 4.6 per cent as against negative 0.7 per cent in October 2023. The average price of Standard chicken in Malaysia slowed to RM9.96 per kilogramme as compared to RM10.36 per kilogramme in November 2022 (October 2023: RM10.02).
In line with the decline in price at Malaysia level, the average price of Standard chicken in Peninsular Malaysia also declined to RM9.17 per kilogramme as compared to RM9.83 per kilogramme in November 2022 (October 2023: RM9.32).
The slower increase in inflation for Restaurants & Hotels to 4.3 per cent (October 2023: 4.6%) was mainly driven by both subgroups of Expenditure in restaurants and cafes, 4.3 per cent (October 2023: 4.5%) and Accommodation services, 4.2 per cent (October 2023: 5.1%).
Other than that, inflation for Health recorded an increase of 2.3 per cent (October 2023: 2.4%) due to a slower incline by subgroups of Outpatients services at 3.6 per cent (October 2023: 3.7%).
Dr. Mohd Uzir added, with regards to inflation at the state level, most of the states recorded increases below the national inflation level at 1.5 per cent. However, five states recorded increases above the national inflation level namely Wilayah Persekutuan Putrajaya (2.3%), Sarawak (2.0%), Perak (1.9%), Pulau Pinang (1.8%) and Selangor (1.7%).
All states registered an increase in the inflation of Food & Non-Alcoholic Beverages. The highest increase was recorded by Pulau Pinang (3.7%), Sarawak (3.6%), Selangor (3.5%), Wilayah Persekutuan Labuan (3.4%) and Wilayah Persekutuan Putrajaya (3.0%). Meanwhile, other states showed an increase below the national inflation of Food & Non-Alcoholic Beverages of 2.6 per cent in November 2023.
The monthly headline inflation remained unchanged in November 2023 as compared to October 2023 (0.1%). A few main groups continued to record increases on a monthly basis which comprised Miscellaneous Goods & Services (0.4%); Housing, Water, Electricity, Gas & Other Fuels (0.2%) and Health (0.2%). However, it was offset by a decline in the Food & Non-Alcoholic Beverages group (-0.3%).
The core inflation (2.0%) still surpassed the overall national inflation rate (1.5%). This was due to Restaurants & Hotels and Food & Non-Alcoholic Beverages which recorded moderate increases of 4.3 per cent and 3.7 per cent respectively in November 2023.
In comparison to inflation of other countries, inflation in Malaysia (1.5%) was lower than inflation in the Philippines (4.1%), Vietnam (3.5%), Republic of Korea (3.3%) and Indonesia (2.9%). However, the rate is higher than Thailand (-0.4%) and China (-0.5%).
