MALAYSIA’S consumer price index (CPI), which measures headline inflation, rose 3.2% on a year-on-year basis in July 2017, and 0.4% lower compared to 3.6% in June 2017.

The Statistics Department said in a statement today that core inflation increased 2.6% in July 2017 compared with the same month last year.

Among the major groups which recorded increases were the indices for transport (+7.7%), food and non-alcoholic beverages (+4.2%), health (+2.9%), recreational services and culture (+2.6%), restaurants and hotels (+2.6%) and furnishings, household equipment and routine household maintenance (+2.6%).

The department said the transport group index showed a significant increase of 7.7% on a year-on-year basis in July 2017, after rising 10.5% in June 2017.

The average price of a litre of RON95 petrol was RM1.96 in July 2017 compared to RM1.75 in July 2016 while for RON97, the average price increased to RM2.21 in July 2017 compared to RM2.10 previously.

Fuels and lubricants for personal transport equipment accounted for 7.8% of the CPI weights.

During the month under review, it said the food and non-alcoholic beverages index which accounted for 30.2% in the CPI weights, increased 4.2% in July 2017, driven by food sub-group such as oils and fats (+39.5%), fish and seafood (+6.7%), fruits (+3.6%) and vegetables (+3.3%).

As for the food away from home index, it continued to rise in July 2017, showing an increase of 4.9%.

The department said the increase in the index for food & non-alcoholic beverages was reflected in most states in Malaysia, especially those in highly urbanised states such as the Federal Territory of Kuala Lumpur, Selangor and Federal Territory of Putrajaya, Penang, Johor and Melaka.

From January to July 2017, the CPI increased 4.0% compared with the same period last year, mainly due to an increase in the food and non-alcoholic beverages index, which rose 4.2%. – Bernama, August 23, 2017.