Malaysia's inflation eased to 3.4% in March 2023
Inflation in Malaysia eased to 3.4% in March 2023, with the consumer price index recorded at 129.9, against 125.6 in the same month of the previous year.
In a statement on 20th April, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the slower increase in inflation in March 2023 was mainly driven by a decrease in the price of unleaded petrol RON97, which eased inflation for the transport group to 2.4%.
He said this was in line with the downward trend of the Brent crude oil price, which was at US$78.53 per barrel in March 2023 (March 2022: US$115.59).
“Nevertheless, inflation for food and non-alcoholic beverages (6.9%) and restaurants and hotels (7.2%) remained high, even though it was lower than in February 2023.
“The weight of the food and non-alcoholic beverages group (29.5%), transport (14.6%), and restaurants and hotels (2.9%) comprises 47.0% of total weight of the CPI, which has a significant impact on the inflation rate and the cost of living,” he said.
Mohd Uzir said apart from that, inflation in March 2023 was also attributable to furnishings, household equipment and routine household maintenance (3.1%), health (2.2%), and miscellaneous goods and services (2.1%).
He said this was followed by recreation services and culture (1.9%), education (1.7%), housing, water, electricity, gas and other fuels (1.6%), alcoholic beverages and tobacco (0.6%), and clothing and footwear (0.5%).
Meanwhile, the communications group recorded negative 1.4%, he said.
Mohd Uzir added that inflation for the restaurants and hotels group increased at a slower pace of 7.2% in March 2023, as compared to 7.4% in February 2023.
He said the price rise in the accommodation services subgroup of 7.7% (February 2023: 7.8%), and expenditure in restaurants and cafés (up 7.0%, against 7.3% in February 2023) were the main factors for the moderate increase for this group.
“The food and non-alcoholic beverages group, which contributes 29.5% of total CPI weight, recorded a moderate increase of 6.9% (February 2023: 7.0%).
“Out of 230 food and beverages items, 201 items (87.4%) recorded price increases as compared to March 2022,” he said.
Commenting on inflation at the state level, Mohd Uzir said that nine states recorded increases below the national inflation level of 3.4%, with Kedah recording the lowest increase of 2.1%.
“However, six states recorded increases above the national inflation level, namely 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 inflation for food and non-alcoholic beverages. The highest increase was recorded by Selangor (8.3%), followed by Sarawak (8.2%), Putrajaya (7.3%), Johor (6.9%), and Pahang (6.9%),” he said.
Meanwhile, he said other states showed an increase below the national inflation rate of 6.9% for food and non-alcoholic beverages in March 2023.