October inflation slightly below forecast but fish, fruits up

Great initiative: A customer selecting vegetables at a supermarket that decided to lower the prices of essential goods in line with the price reduction campaign.

KUALA LUMPUR: Malaysia's inflation rate rose at a slower pace of 1.4% in October 2016 compared with a survey of a 1.5% rise, with the main causes due to higher food prices especially fish and fruits.

The Statistics Department said on Friday the inflation rate, as measured by the Consumer Price Index (CPI), was up 0.3% from September. 

The department explained the 1.4% increase in CPI to 115.7 from 114.1 a year ago was due to the increase in the indices for food and non-alcoholic beverages (+2.5%) and housing, water, electricity, gas and other fuels (+2.1%).

The increase was fuelled by the food sub-group which included fish and seafood (+5%); fruits (+3.1%) and meat (+2.4%). As for food away from home index, it continued to rise in October 2016, up 3.3%.

“The index for food and non-alcoholic beverages recorded an increase higher than the rate of overall CPI,” it said, adding the increase was reflected in each state in Malaysia especially those in highly urbanised states such as  Kuala Lumpur, Selangor, Putrajaya, Penang, Johor and also Melaka.

The index for food and non-alcoholic beverages rose 3.7% in Melaka, 3.3% in Johor, 3.3% in Penang, 3.0% in Kuala Lumpur, 2.9% in Negeri Sembilan and 2.7% in Selangor and Putrajaya.

“Core inflation rose 2% in October 2016 on-year,” it said, pointing out the increases were due to transport; recreation services and culture; housing, water, electricity, gas and other fuels (+2.5%) and food and non-alcoholic beverages (+2.4%).

CPI for  January to October 2016 increased 2.1% when compared with the previous corresponding period. 

This follows the 2.2% increase in January to September 2016 and a 2.3% increase in January to August 2016.