MALAYSIA'S MARCH INFLATION REMAINS AT 1.8% - DOSM

Malaysia's inflation remained at 1.8% in March 2024 with the index recording 132.2 points versus 129.9 in the same period last year, said the Department of Statistics (DOSM).

DOSM said the housing, water, electricity, gas and and other fuels (3.0%); restaurant and accommodation services (3.0%); personal care, social protection and miscellaneous goods and services (2.6%) and transport (1.3%) sectors saw an increase in inflation in March.

“However, the increase has been offset by the other main group, which recorded a slower increase, namely health (2.1%); food and beverages (F&B) (1.7%) and recreation, sport and culture (1.5%),” it said in a statement on the March 2024 Consumer Price Index (CPI).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the increase of 3.0% compared with 2.7% in February 2024 for housing, water, electricity, gas and other fuels was contributed by the expenditure class of water supply, which increased to 31.4% in March 2024 compared to February 2024's 28.8%).

“Kedah has increased the water tariff rates for domestic category users starting in March 2024 compared to other states that have implemented the new tariff rates in February 2024,” he said.

Mohd Uzir said the F&B group, which contributes 29.8% of the total CPI weight, recorded a slower increase of 1.7% in March 2024 compared to 1.9% in February 2024.

“The main subgroup of food at home increased to 0.3% in March 2024 (February 2024: 0.5%). Meanwhile, the main subgroup of food away from home increased 3.5%, the same rate as registered in February 2024.

“The expenditure class of cereals and cereal products increased by 2.0% in March 2024 (February 2024: 2.5%). This was contributed by Basmati rice which increased slower at 0.4% as compared with 1.0% in February 2024,” he said.

Meanwhile, the chief statistician said rice flour rose to 9.6% from 8.8% in February 2024.

He said the inflation for the expenditure class of milk, other dairy products and eggs registered a slower increase of 1.4% in March 2024 from 2.3% in the previous month.

“The slower increase was recorded by the expenditure item of fresh milk 2.4% versus 2.5% in February 2024,” he said.

Meanwhile, DOSM said the inflation for the expenditure class of oil and fats remained in the negative range at negative 0.1% in March 2024 (February 2024: -0.2%).

The inflation for the expenditure class of meat increased slower to 0.2% in March 2024 (February 2024: 0.5%).

It said chicken, the largest component, comprising 32.6% of the expenditure class of meat, recorded a decline of negative 1.1% (February 2024:-0.7%).

“The March 2024 average price of standard chicken in Malaysia was RM10.28 per kilogramme compared with RM10.40 per kilogramme in March 2023 (February 2024: RM10.29),” it said.

The increase in inflation for restaurant and accommodation services to 3.0% (February 2024: 2.9%) due to the increase in beverage preparation services, 3.7% (February 2024: 3.4%), the DOSM said.

At the same time, it said the inflation for personal care, social protection and miscellaneous goods and services increased by 2.6% (February 2024: 2.5%) due to the incline in the subgroup of other personal item, 9.8% (February 2024: 8.6%).

Other than that, inflation for transport increased by 1.3% in March 2024 against 1.2% in February 2024.

The increase was due to the main subgroup of operation of personal transport equipment which increased to 1.4% in March 2024 (February 2024: 1.3%).

The average price of unleaded petrol RON97 in March 2024 was RM3.47 per litre as against RM3.35 per litre in March 2023 (February 2024: RM3.47).

“With regards to inflation at the state level, most of the states recorded increases below the national inflation level of 1.8%.

“However, five states recorded increases above the national inflation level, namely Pulau Pinang (3.0% ), Sarawak (2.9%), Pahang (2.1%), Selangor (2.1%) and Perlis (1.9%),” said Mohd Uzir.

All states registered an increase in the inflation of F&B, with Selangor recording the highest increase at 3.2%, followed by Pulau Pinang (2.8%), Putrajaya (2.6%), Sarawak (2.1%), Perlis (2.1%) and Labuan (2.0%).

Meanwhile, other states showed an increase below the national inflation of F&B of 1.7% in March 2024.

Overall, monthly inflation recorded a marginal increase of 0.1% versus 0.5% recorded in February 2024.

A few main groups that posted increases on a monthly basis were restaurant and accommodation services (0.4%); personal care, social protection miscellaneous goods and services (0.4%) and housing, water, electricity, gas and other fuels (0.3%).

Meanwhile, inflation for the first quarter (1Q) of 2024 recorded an incline of 1.7% (4Q 2023: 1.6%).

For quarterly comparison, Malaysia's inflation increased 0.7% (Q4 2023: 0.2%).

Mohd Uzir said core inflation increased slower at 1.7% as compared to 1.8% in February 2024.

He said the increase was due to the F&B and restaurant and accommodation services, both of which recorded increases of 3.0% in March 2024.

“Compared with inflation in other selected countries, inflation in Malaysia (1.8%) was lower than inflation in Vietnam (4.0%), the Philippines (3.7%), United States (3.5%), South Korea (3.1%) and Indonesia (3.1%).

“However, the rate is higher than China (0.1%) and Thailand (-0.5%),” he added.