Consumer Price Index

Overview

CPI increased at the same pace of 1.5 per cent in September 2016, however the index for Food & Non-Alcoholic Beverages recorded a rate of 3.0 per cent.


 

SUMMARY OF FINDINGS

The overall index for CPI in September 2016 rose by 1.5 percent to 115.3 from 113.6 in the same month last year. The increase in the index for Food & Non-Alcoholic Beverages (+3.0 per cent) and Housing, Water, Electricity, Gas & Other Fuels (+2.1 per cent) were countered by the decrease in the index of Transport group by 5.5 per cent; Communication (-2.6 per cent) and Clothing & Footwear (-0.6 per cent) (Table 1).

Chart 1: Consumer Price Index, Index Numbers for Overall and Selected Main Groups

Transport group made the downward contribution, down 5.5 per cent in the September 2016, following falls of 6.7 per cent and 9.9 per cent in the August 2016 and July 2016. The average price of 1 litre of RON95 petrol was RM1.70 in the September 2016, down from RM1.75 in the August 2016 and RM1.95 in the September 2015. RON97 petrol prices also decreased to RM2.05 in the September 2016, from RM2.10 in the August 2016 and RM2.35 in the September 2015.

The index for Food & Non-Alcoholic Beverages increased 3.0 per cent in the September 2016. The increase was led by increases in food sub-groups namely, Fish & Seafood (+4.8 per cent); Meat (+4.2 per cent) and Fruits (+3.3 per cent). Meanwhile, the index for Food Away From Home continued to rise in September 2016, increased by 3.4 per cent.

 

Chart 2: Consumer Price Index, Annual Percentage Change for Food & Non-Alcoholic Beverages 


Among the index of food items which recorded notable increases in September 2016 compared to the same period last year were Cuttlefish (+10.9 per cent); Prawn (+5.9 per cent); Red Snapper (Fish) (+4.7 per cent); Spanish Mackerel (Fish) (+4.4 per cent) and Indian Mackerel (Fish) (+3.6 per cent). Meanwhile, decreases were registered in the index of some food items such as Tomatoes (-4.5 per cent); Round Cabbage (-3.7 per cent); Cucumber (-2.8 per cent) and Brinjals (-0.7 per cent).

The index for Food & Non-Alcoholic Beverages recorded an increase higher than the rate of overall CPI. The increase in the index for Food & Non-Alcoholic Beverages was reflected in each state in Malaysia especially those in highly urbanised states such as Wilayah Persekutuan Kuala Lumpur, Selangor & Wilayah Persekutuan Putrajaya, Pulau Pinang and Johor.

 

Chart 3: Consumer Price Index, Annual Percentage Change for Food & Non-Alcoholic Beverages by State

Six states recorded higher increases for Food & Non-Alcoholic Beverages index above the national level for September 2016 compared to the same month in 2015. The index for Food & Non-Alcoholic Beverages rose 3.8 per cent in Johor, 3.7 per cent in Wilayah Persekutuan Kuala Lumpur, 3.6 per cent in Pulau Pinang, 3.3 per cent in Melaka and 3.1 per cent in Selangor & Wilayah Persekutuan Putrajaya and Negeri Sembilan respectively.

On a monthly basis, the index for Food & Non-Alcoholic Beverages decreased 0.2 per cent in September 2016 (August 2016: +0.2 per cent) reflecting the slower increase in the prices of fresh food prices during the month due to higher production.

Index for Housing, Water, Electricity, Gas & Other Fuels rose 2.1 per cent in September 2016 compared with the same month last year, with most of the movement influenced by higher index of rentals for housing (+2.5%) and electricity (+1.3%).

Based on a seasonally adjusted term, the CPI for September 2016 decreased by 0.3 per cent as compared to August 2016 (Table 1)

Core inflation rose 2.1 per cent in September 2016 compared to the same period of the previous year. Among the major groups which contributing to a higher core rate were price increases for Transport (+4.5 per cent); Recreation Services & Culture (+3.4 per cent); Food & Non-Alcoholic Beverages (+2.5 per cent) and Housing, Water, Electricity, Gas & Other Fuels (+2.5 per cent) (Table 3)

 

CPI changes for the period January - September 2016 / 2015

CPI for the period January to September 2016 registered an increase of 2.2 per cent as compared to the same period last year. This follows a 2.3 per cent increase in the period January to August 2016 and 2.4 per cent increase in the period January to July 2016.

Index for Food & Non-Alcoholic Beverages were the main upward contributor to the CPI rise in the period January – September 2016, registered an increase of 4.0 per cent. The increase was the result of increases in the index for Food At Home (+4.2 per cent); Food Away From Home (+3.9 per cent) and Coffee, Tea, Cocoa & Non-Alcoholic Beverages (+1.5 per cent). Among the subgroups of Food At Home which showed significant increases during this period as shown in Table 2 were Vegetables (+7.9 per cent); Fish & Seafood (+6.8 per cent); Fruits (+5.4 per cent) and Meat (+3.8 per cent).

Index for Housing, Water, Electricity, Gas & Other Fuels rose 2.5 per cent. Other major groups which contributing to the CPI rise during this period were Alcoholic Beverages & Tobacco (+21.2 per cent); Miscellaneous Goods & Services (+3.3 per cent); Restaurants & Hotels (+3.1 per cent); Health (+2.9 per cent) and Furnishing, Household Equipment & Routine Household Maintenance (+2.7 per cent). The increases were partly offset by Transport group which registered a decrease of 5.3 per cent due to lower prices for petrol.

Core inflation, which excludes most volatile items of fresh food, as well as administered prices of goods and services records changes ranging from 2.0 per cent to 3.6 per cent in the period January - September 2016 compared to the same period of the previous year. This indicates the underlying or the long run trend in the price level.

Table 1: Consumer Price Index for Main Groups, Malaysia (2010=100)

 

Table 2: Consumer Price Index for Sub-Groups of Food and Non-Alcoholic Beverages, Malaysia (2010=100)

Table 3: Headline CPI and Core Index by Main Groups, Malaysia (2010=100)

 

 

Released By:

THE OFFICE OF CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
21 October 2016

Contact person:

Ho Mei Kei
Public Relation Officer
Corporate and User Services Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : mkho[at]stats.gov.my

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