Malaysia Inflation rises 3.5% in Dec 2017, full year 3.7%
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Malaysia’s consumer price index (CPI) expanded 3.5% to 120.9 in December 2017 from 116.8 in the corresponding month of 2016, mainly driven by the transport segment, which was up 11.5%.
For the full year of 2017, CPI rose 3.7% compared with the same period in 2016.
According to the Department of Statistics, other major groups which recorded increases in December 2017 were food & non-alcoholic beverages (+4.1%), restaurants and hotels (+2.6%), furnishings, household equipment & routine household maintenance (+2.4%), health (+2.3%) and housing, water, electricity, gas & other fuels (+2.2%).
On a month-on-month basis, CPI increased 0.1% in December 2017. Core inflation, which excludes most volatile items of fresh food, as well as administered prices of goods and services, rose 2.2% in December 2017 compared with the same month of the previous year.
MIDF Research expects the headline inflation rate to average at 2.6% in 2018 amid unfavourable base effects.
Questions & Answers
Q.What was the main reason for the increase in Malaysia's consumer price index in December 2017?
What was the main reason for the increase in Malaysia's consumer price index in December 2017?
The primary driver for the 3.5% rise in the CPI during December 2017 was the transport segment. This category saw a significant increase of 11.5% compared to the same month in the previous year.
Q.Which other significant categories contributed to the rise in the Consumer Price Index in December 2017?
Which other significant categories contributed to the rise in the Consumer Price Index in December 2017?
Other major groups recording increases in December 2017 included food & non-alcoholic beverages (+4.1%), restaurants and hotels (+2.6%), and furnishings, household equipment & routine household maintenance (+2.4%). Health and housing also contributed.
Q.How did core inflation compare to the overall CPI increase in December 2017?
How did core inflation compare to the overall CPI increase in December 2017?
Core inflation, which excludes volatile fresh food and administered prices, rose 2.2% in December 2017. This was lower than the overall consumer price index increase of 3.5% for the same month.
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