When compared with the previous month, CPI for February 2016 remained unchanged at 114.5. Of the twelve major groups, eight recorded an increase, while two main groups registered decreases in January 2016, namely Transport (-3.1 per cent) and Clothing & Footwear (-0.3 per cent) .

Based on a seasonally adjusted term, the CPI for February 2016 remained unchanged at 114.5 as compared to January 2016 (Table 1).

Meanwhile, the index of some food items registered a decrease in February 2016 compared with the previous month. Among these food items were Tomatoes (-9.3 per cent); Watermelon (-8.4 per cent); Brinjal (-2.8 per cent); Chicken (-1.6 per cent) and Onion, Big (-1.3 per cent).

Note: ⁽¹⁾ From the release of Consumers Price Index: January 2016 onwards, the weights used in the index are based on the Household Expenditure Survey 2014

CPI changes for the period January – February 2016 / 2015

The increase of 3.8 per cent in the CPI for period January to February 2016 was led by increases in the main groups with high weights: Food & Non-Alcoholic Beverages(+4.3 per cent); Housing, Water, Electricity, Gas & Other Fuels (+2.9 per cent) and Transport (+2.1 per cent). Other increases were Alcoholic Beverages & Tobacco (+22.6 per cent); Miscellaneous Goods & Services (+5.4 per cent); Health (+4.6 per cent); Restaurants & Hotels (+4.6 per cent) and Furnishing, Household Equipment & Routine Household Maintenance (+4.4 per cent).

The increase of 4.3 per cent in the index for Food & Non-Alcoholic Beverages was the result of increases for Food At Home (+4.2 per cent); Food Away From Home (+4.8 per cent) and Coffee, Tea, Cocoa & Non-Alcoholic Beverages (+3.1 per cent). Among the subgroups of Food At Home which showed significant increases during this period as shown in Table 2 were Fish & Seafood (+6.8 per cent); Fruits (+6.1 per cent); Meat (+5.5 per cent); and Vegetables (+4.6 per cent).

Core Inflation 

Core inflation also rose 3.6 percent in February 2016 compared to the same period of the previous year (Table 3). Core inflation differs from overall CPI (headline CPI) in that it is calculated by excluding prices for goods and services that are subject to fluctuations which considered transitory in nature and do not have a lasting impact on the underlying trend in inflation. These include nine of the CPI's most volatile items of fresh food, as well as administered prices of goods and services. Core inflation measures are used as operational guides for monetary policy in assessing the direction of inflation. 

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