• Inflation reversed course and edged up to +2.2% yoy; 0.2% mom in September

• Food prices increased faster; Transport inflation rose constantly

• Core inflation remained at +0.6% yoy

• Global inflation surges slightly in September

• Headline inflation to hover above 2.0%

Malaysia’s CPI reversed course and accelerated to 2.2% yoy in September as compared to 2.0% yoy in August. This was the eighth straight month of inflation since February 2021. The reacceleration was attributable to the sustained higher crude oil prices and pricey food prices during the month. On a monthly basis, consumer price rose by 0.2% compared to a flat growth in the previous month.

The increased in the non-food price index was stable at 2.4% (Aug: +2.4%) while the food price index grew faster by 1.9% yoy (Aug: +1.2%). CPI without fuel, which covers all goods and services except RON95, RON97 and Diesel, increased 0.9% in September (Aug: +0.5%). Meanwhile, durable goods price increased by 0.2% in September (Aug: 0.0%). The prices of semi-durable goods remained unchanged, declining by -0.3% yoy (Aug: -0.3%), while non-durable goods rose higher by 5.4% yoy (Aug: +4.8%).

Meanwhile, CPI growth in 3Q21 was halved to 2.2% yoy from 4.2% yoy in the preceding quarter while on a quarterly basis, the CPI declined 0.4% qoq. CPI for the period of January to September 2021 increased 2.3% compared to the same period last year. The incline was attributed by Transport (+10.9%) followed by Food & NonAlcoholic Beverages (+1.5%).

Source: BIMB Securities Research - 25 Oct 2021