KUALA LUMPUR (July 24): Malaysia’s headline inflation remained steady in June, driven by higher prices at restaurants, costlier utilities and food, though the rate came in lower than expected, official data on Wednesday showed.

The consumer price index (CPI) — Malaysia’s main gauge of inflation — rose 2.0% in June when compared to the same month in 2023, the Department of Statistics Malaysia said in a statement. That compares to the 2.2% increase predicted in a Bloomberg survey, and matched May’s year-on-year (y-o-y) pace.

The food and beverages group, which accounts for nearly 30% of the index’s weightage, rose 2.0% in June. The category that covers housing, water, electricity, gas and other fuels was up 3.2%, while the restaurant and accommodation services index climbed 3.3%.

However, both clothing-and-footwear as well as insurance-and-financial services groups declined 0.1% in June from a year earlier.

Inflation for transport — which includes purchase of vehicles and public transport services — rose 1.2% y-o-y in June, picking up from May’s rate of 1.4%, following diesel subsidy re-targeting.

Core inflation, which measures domestic-driven inflation by excluding volatile items and other price-administered items, came in at 1.9% in June, the same pace as in May.

The official forecast calls for a headline inflation rate of 2% to 3.5% in 2024, versus 2.5% in 2023, with core inflation at 2% to 3% against the 3% average in 2023.