THE Consumer Price Index (CPI) for March eased to 3.4% with the index point recorded at 129.9 against 125.6 in the corresponding month last year.

Chief statistician Mohd Uzir Mahidin said the slower inflation was mainly driven by the decrease in the price of RON97, which eased the inflation of the transport group to 2.4%.

“This was in line with the downward trend of Brent crude oil price, which was at US$78.53 (RM348.36) per barrel last month from US$115.59 in March 2022,” he said in a statement today.

Nevertheless, he said inflation for food and non-alcoholic beverages (6.9%), as well as restaurants and hotels (7.2%) remained high even though it was lower than in February.

The weight for food and non-alcoholic beverages (29.5%); transport (14.6%) and restaurants and hotels (2.9%) comprise 47.0% of the total weight for CPI, significantly impacting the inflation rate and the cost of living.

Apart from that, the increase in Malaysia’s inflation in March was also due to furnishings, household equipment and routine household maintenance (3.1%); health (2.2%) and miscellaneous goods and services (2.1%).

“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 communication group recorded negative 1.4%,” he said.

Uzir said food and non-alcoholic beverages, which contribute 29.5% of total CPI, recorded a moderate increase of 6.9% from 7% in February.

He also revealed that out of 230 items for food and non-alcoholic beverages, 201 items (87.4%) recorded price increases against March last year.

On another note, Uzir said the CPI for the first quarter of this year inclined 3.6% compared with the preceding quarter last year. On a quarterly basis, CPI grew at 0.6%, the same rate 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% from 3.9% in February.

“The increase was mainly due to the food and non-alcoholic beverages that recorded 7.5%.

“In addition, the restaurants and hotels group also recorded an increase of 7.2%, followed by transport (5.7%),” he said.

He said a monthly headline inflation in March increased marginally at 0.1% compared with February.

This was mainly contributed by restaurants and hotels (0.3%), while furnishings, household equipment and routine household maintenance; education and miscellaneous goods and services increased by 0.2% respectively.

In comparison to selected countries in the Asia Pacific region, Uzir said the inflation rate in Malaysia was lower than that of South Korea, Indonesia and the Philippines. – Bernama, April 20, 2023.