Overview

Food Inflation continues to contribute to the rise in national inflation, December 2021

National inflation in December 2021 increased 3.2 per cent to 124.5 as against 120.6 in the same month of the preceding year due to the base effect last year. The increase also surpassed the average inflation in Malaysia for the period 2011 to 2021 (1.9%). National inflation for the period January to December 2021 showed a significant increase of 2.5 per cent as compared to a negative 1.2 per cent for the same period in 2020.

Chart 1: Inflation by Main Group, December 2021

Inflation without Fuel 

Inflation without fuel rose 2.0 per cent in December 2021 to 115.1 from 112.8 in the same month of the preceding year. Inflation without fuel covers all goods and services except Unleaded Petrol RON95, Unleaded Petrol RON97 and Diesel.

Core Inflation

Core inflation measures changes in the prices of all goods and services, excluding volatile items of fresh food as well as goods controlled by the government. Core inflation registered an increase of 1.1 per cent in December 2021 as compared to the same month of the previous year. The higher increase was recorded by the Furnishings, Household Equipment & Routine Household Maintenance group with 2.7 per cent.

In addition, the Food & Non-Alcoholic Beverages group also recorded an increase of 2.1 per cent, followed by Transport (1.9%); Restaurants & Hotels (1.3%) and Housing, Water, Electricity, Gas & Other Fuels (0.9%). 

Inflation by State 

In December 2021, the inflation for all states was in a positive range with eight states showed an increase above the national inflation level of 3.2 per cent. The highest increase was recorded by Terengganu (3.9%) while Sarawak (2.5%), Wilayah Persekutuan Kuala Lumpur (2.3%) and Sabah & Wilayah Persekutuan Labuan (2.0%) were the three states with the lowest CPI increase.

All states registered an increase in the inflation of Food & Non-Alcoholic Beverages. The highest increase was recorded by Selangor & Wilayah Persekutuan Putrajaya (4.3%) followed by Johor (3.7%), Perak (3.3%) and Pahang (3.2%). Meanwhile, other states showed an increase below the national inflation of Food & Non-Alcoholic Beverages rate of 3.2 per cent in December 2021. The increase was due to higher prices of vegetables, eggs, fish & seafood in December 2021 as compared to the same month last year.

Chart 2: Inflation by State, December 2021

The full publication of the Consumer Price Index Malaysia, December 2021 can be downloaded from eStatistik portal.

Released By:

DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
 DrUzir_Mahidin      Dr_Uzir

21 January 2022

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