Malaysia’s inflation rises 2.0pc, food inflation up 4.0pc from March 2022

Malaysia – Malaysia’s Consumer Price Index (CPI) in March 2022 rose by 2.2 per cent to 125.6 against 122.9 in March 2021, surpassing the average inflation for the January 2011-March 2022 period which stood at 1.9 per cent, said the Statistics Department today.

In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said the rise in headline inflation was mainly driven by the 4.0 per cent year-on-year (y-o-y) increase in food and non-alcoholic beverages.

“Food inflation remained as a major contributor to inflation. The 4.0 per cent growth in the food and non-alcoholic beverages group was largely due to an increase in the food at home component which rose by 4.3 per cent compared to 4.1 per cent recorded in February 2022,” he added.

Mohd Uzir said the meat subgroup continued to be the main contributor to the food inflation, rising by 7.6 per cent in March 2022.

“Chicken, the biggest component in the meat subgroup, expanded 10.5 per cent, while beef rose by 4.3 per cent,” he added.

Meanwhile, the rise in furnishings, household equipment and routine household maintenance (3.0 per cent), restaurants and hotels (2.9 per cent) and transport (2.6 per cent) had also contributed to the overall CPI.

Miscellaneous goods and services also grew by 1.9 per cent, while recreation services and culture expanded by 1.1 per cent.

Both housing, water, electricity, gas and other fuels index, as well as education, registered an increase of 0.9 per cent, respectively, while the alcoholic beverages and tobacco index, as well as health, increased marginally by 0.5 per cent and 0.2 per cent, respectively.

On a monthly basis, the March 2022 CPI increased 0.3 per cent compared to February 2022, attributed to the growth in transport (1.1 per cent) and miscellaneous goods and services (0.6 per cent).

Mohd Uzir said all states recorded increases in inflation, with Selangor and Putrajaya rising above the 2.2 per cent national inflation level at 2.9 per cent.

Core inflation registered an increase of 2.0 per cent y-o-y in March 2022, with the transport group recording the highest increase at 3.9 per cent. Other groups which recorded an increase were the food and non-alcoholic beverages group (3.5 per cent), furnishings, household equipment and routine household maintenance (3.0 per cent); restaurants and hotels (2.9 per cent), miscellaneous goods and services (1.9 per cent) and recreation services and culture (1.1 per cent).