• CPI grew marginally lower at 3.2% yoy and dropped 0.1% mom

• Core inflation grew slightly higher at 2.6% yoy

• Weakening global inflation pressure

• Deceleration in overall prices continues

Malaysia's consumer price index in July rose 3.2% yoy – slowing in pace for the fourth month in a row – on costlier transport, besides food and non-alcoholic drinks. Transportation continued to be the highest contributor to the growth, up 7.7% yoy. The index for food and non-alcoholic beverages, which accounted 30.2% in the CPI weights, increased 4.2% yoy.

On monthly basis, headline inflation continued a downward trend for the fifth consecutive month as the CPI for July decreased 0.1% after seasonal adjustment as compared to -0.2% registered in June. It was dragged down by the transportation index which declined by -1.1% in July.

CPI for the period January-July 2017 registered an increase of 4.0% compared with the same period last year, mainly due to an increase in the food and non-alcoholic beverages index, which rose 4.2%

Source: BIMB Securities Research - 24 Aug 2017