August inflation inched up
Malaysia's inflation rate inched up to 1.5% yoy in August from 1.4% in the previous month. Food inflation accelerated, the most since April last year, while housing & utilities prices rose further. In addition, transport prices continued to drop at a slightly faster pace of -2.1% yoy (Jul: -1.9%). On a monthly basis, consumer prices went up 0.2% in August, following a 0.1% gain in July. Food & non-alcoholic beverages (FNAB), which account for 29.5% of the CPI weights, increased by 2.6% yoy in August, the most since April last year, compared to a 2.4% rise in July. Also, prices went up faster for communication; alcoholic beverages & tobacco; miscellaneous goods & services and health. On the other hand, inflation was steady for both education and restaurants and hotels. Meanwhile, cost rose softer for: housing, water, electricity, gas, & other fuels; recreation services & culture and household equipment & routine maintenance. Meantime, cost continued to decline for transport and clothing & footwear. The CPI for the period of January-August increased by 0.5% as compared to the same period of the preceding year.
Source: BIMB Securities Research - 26 Sept 2019