INFLATION stabilised around 0.9% in July, caused by higher transport (+6.7%) and housing and utilities (+2%), according to the Statistics Department.

On a monthly basis, the consumer price index rose 0.2% compared with June, the department said.

The Food and Non-Alcoholic beverages category, which accounts for one-third (29.5%) of the CPI, increased 0.7% in July due to higher seafood prices (+2.4%).

For the subgroup of meats, prices fell by 1.8% in tandem with other subgroups, such as sugar, jam, honey and chocolate (-1%), vegetables (-0.9%), milk and eggs (-0.9%) and oils (0.4%).

The decrease, said the department, was due to the fall in certain prices in most states of items such as tomatoes (-8.5%), brinjals (-8%), fresh milk (-4.5%), watermelon (-3%), round cabbage (-3%) and chicken (-2.2%).

However, the index for Food Away From Home rose 2% in July.

Despite the marginal increase in food prices, Kuala Lumpur and Sarawak registered the highest jumps at 3.5% and 0.9%, respectively.

The core index, however, decreased by 0.2% last month due to lower prices in communications (-3.9%), clothing and footwear (-3%), and miscellaneous goods and services (-3%).

The goods and services tax was zero-rated on June 1. 

Meanwhile, the CPI for January-July 2018 rose 1.4% compared with the same period in the previous year. – August 24, 2018.