Malaysia Inflation Rate Below Expectations in July


Malaysian annual inflation rate slowed to 3.2 percent in July from 3.3 percent in June, slightly below market expectations and driven by lower food and transport cost and falling clothing prices.

Year-on-year, downward pressures came from cost of food and non-alcoholic beverages (prices went up 3.1 percent in July, compared with a 3.5 percent rise in June). Prices of clothing and footwear fell at a faster 0.2 percent and transport cost rose 5.4 percent (5.5 percent in June). In contrast, health prices accelerated (3.3 percent versus 3.1 percent) and education cost rose at a faster 2.3 percent. Housing prices rose 3.2 percent in July, the same rate recorded in the previous month. 

When compared with the previous month, consumer prices rose 0.1 percent in July, slowing from a 0.2 percent increase in June. Increases were for main groups food and non-alcoholic beverages and health (0.3 percent respectively); restaurants and hotels and education (0.2 percent respectively). On the other hand, decreases were recorded for clothing and footwear (- 0.4 percent); furnishings, household equipment and routine household maintenance (- 0.3 percent) and communication (- 0.1 percent). The indices for alcoholic beverages and tobacco; housing, water, electricity, gas and other fuels; transport; recreation services and culture and miscellaneous goods and services remained unchanged. 

Malaysia Inflation Rate Below Expectations in July


Department of Statistics, Malaysia | Joana Taborda | joana.taborda@tradingeconomics.com
8/20/2014 10:25:44 AM