THE Consumer Price Index (CPI) continued to ease in June to 2.4%, the lowest level recorded so far in 2023, said the Statistics Malaysia (DOSM). 

Inflation, which came in at 2.8% year-on-year in May, has shown a moderating trend since January when it stood at 3.7%. 

In a statement today, chief statistician Mohd Uzir Mahidin said the slower increment in June was driven by the lower increase in components such as restaurants and hotels (5.4%), food and non-alcoholic beverages (4.7%) and furnishings, household equipment and routine household maintenance (2.3%). 

He said the food and non-alcoholic beverages group, which contributes 29.5% of total CPI weight, increased at a more moderate rate of 4.7% (May: 5.9%). 

The component of food at home recorded a slower growth of 3.2% last month compared with 4.3% in May, while the food away from home component’s increase slowed to 6.8% from 8.1%. 

On state-level inflation, Uzir said 10 states recorded increases below the national inflation level of 2.4%, with the Federal Territory of Labuan posting the lowest increase of 1.2% in June. 

“However, six states recorded increases above the national inflation level, namely Sarawak (3%), Pahang (2.9%), Putrajaya (2.8%), Selangor (2.7%), Perak (2.7%) and Malacca (2.7%),” he said. 

In comparison with several countries in the Asia-Pacific region, he said Malaysia’s inflation rate is lower than that of South Korea, Indonesia and the Philippines.

Inflation in the Eurozone increased at a slower rate of 5.5% in June versus 6.1% in May, while inflation in the United States eased to 3% from 4%. – Bernama, July 24, 2023.