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Jan 21, 2010

Malaysia's inflation up 1.1% in December


PETALING JAYA: Malaysia’s consumer price index (CPI) rose 1.1% year-on-year in December, the first increase in seven months.

Compared with the previous month, the CPI increased by 0.2%, the Statistics Department said yesterday.

The index for food and non-alcoholic beverages in December increased 1.1% from a year earlier, while the index for non-food items decreased by 1.1%.

The Statistics Department said the 1.1% increase in the CPI was brought about by increases observed in the indices of all the main groups except those of transport (-9.4%), clothing and footwear (-0.9%) and communication (-0.5%). Notable increases among these main groups with high weights were food and non-alcoholic beverages (+4.1%) as well as housing, water, electricity, gas and other fuels (+1.4%).

The CPI from January to December increased 0.6% to 112.1 compared with the previous corresponding period.

TA Research economist Patricia Oh said the upward trend in CPI was largely due to the elimination of base effects from the over 40% fuel price hike in June 2008. “We expect price levels to be on the upward trend this year,” she said. She projects CPI to be 1.2% for this year, taking into account the rise in sugar price.

 

For reports from the Statistics Department click here

 

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