Malaysia's inflation rate for September 2024 has eased to 1.8%, down from 1.9% in August, according to the Department of Statistics Malaysia (DoSM). This decline reflects a slower increase in key consumer categories, providing a slight relief to consumers amid rising costs.
Key Takeaways
- Inflation rate decreased to 1.8% in September 2024.
- Consumer Price Index (CPI) rose to 133.2, compared to 130.8 in September 2023.
- Major contributors to inflation include personal care, transport, and food expenditures.
- Core inflation also rose at a slower pace of 1.8%.
Overview of Inflation Trends
The inflation rate in Malaysia has shown a slight easing, with the latest figures indicating a decrease to 1.8% in September 2024. This is a minor drop from the previous month's rate of 1.9%. The CPI for September stood at 133.2, reflecting an increase from 130.8 in the same month last year.
Major Contributors to Inflation
The increase in inflation was primarily driven by several key categories:
- Personal Care, Social Protection, and Miscellaneous Goods and Services: Increased by 3.1%.
- Transport: Increased by 1.1%.
- Alcoholic Beverages and Tobacco: Increased by 0.8%.
- Furnishings, Household Equipment, and Routine Household Maintenance: Increased by 0.6%.
- Information and Communication: Increased by 0.4%.
Conversely, clothing and footwear saw a decline of 0.3%, indicating a mixed bag of inflationary pressures across different sectors.
Food and Beverages Impact
The food and beverages group, which constitutes 29.8% of the total CPI weight, recorded a 1.6% increase in September, matching the rate from August. Within this category:
- Food at Home: Increased by 0.4%.
- Meat Expenditures: Increased by 0.7%, with chicken prices rising by 1.3%.
The average price of standard chicken in Malaysia for September 2024 was RM10.47 per kilogram, up from RM10.01 in September 2023.
State-Level Inflation Rates
Most states in Malaysia reported inflation rates below the national average of 1.8%. However, a few states experienced higher rates:
- Pulau Pinang: 3.1%
- Pahang: 2.7%
- Sarawak: 2.3%
- Selangor: 2.3%
Core Inflation Insights
Core inflation, which excludes volatile items, also rose at a slower pace of 1.8% in September 2024. This was influenced by increases in:
- Restaurant and Accommodation Services: 3.2%
- Personal Care and Miscellaneous Goods: 3.1%
- Food and Beverages: 2.3%
Comparative Inflation Rates
When compared to other countries in the region, Malaysia's inflation rate of 1.8% is lower than Vietnam's 2.6% and the Philippines' 1.9%. However, it is higher than South Korea's 1.6%, Thailand's 0.6%, and China's 0.4%. This positioning highlights Malaysia's relatively stable inflation environment amidst varying economic conditions in the region.
In conclusion, while Malaysia's inflation rate has eased slightly, the ongoing pressures in key sectors, particularly food and personal care, continue to impact consumers. The government and economic analysts will be closely monitoring these trends as they develop in the coming months.
