• Inflation spiked to +3.3% yoy; 0.2% mom in November
   
• Food inflation increased faster; Transport inflation ticked higher
   
• Core inflation edged higher to +0.9% yoy
   
• Rising inflation widespread globally, but US stands out
   
• Headline inflation to remain at a higher level

Malaysia’s CPI spiked to 3.3% yoy in November compared to 2.9% yoy in October. This was the tenth straight month of inflation since February 2021 and the fastest in 5 months. The acceleration was attributable to the sustained higher crude oil prices, foods inflation, and improving household demand. On a monthly basis, consumer prices rose by 0.2% compared to October’s 0.7% gains.

The food price index grew faster by 2.7% yoy (Oct: +1.9%; Sep: +1.9%). CPI without fuel, which covers all goods and services except RON95, RON97 and Diesel, increased faster by 1.8% in November (Oct: +1.5%; Sep: +0.9%). Meanwhile, durable goods price increased by 0.9% in November (Oct: +0.6%; Sep: +0.2%), while non-durable goods rose higher by 8.4% yoy (Oct: +7.3%; Sep: +5.4%). The prices of semi-durable goods declined a tap slower by -0.2% yoy (Oct: -0.3%; Sep: -0.3%).

CPI for the period of January to November 2021 increased 2.3% compared to the same period last year. The incline was attributed by Transport (+11.1%) followed by Food & Non-Alcoholic Beverages (+1.6%).

Source: BIMB Securities Research - 23 Dec 2021