KUALA LUMPUR: Malaysia’s inflation remained unchanged at two percent in August 2023, similar to the growth rate recorded in July 2023, said the Department of Statistics Malaysia (DoSM).

In a statement today, DoSM said the inflation rate recorded in August was mainly due to the slower growth in restaurants and hotels, which fell to 4.7 percent from five percent in July 2023; food and non-alcoholic beverages (4.1 percent against 4.4 percent in July 2023), as well as miscellaneous goods and services which moderated to 2.4 percent from 2.6 percent in the previous month.

It said the food and non-alcoholic beverages group contributes 29.5 percent of total consumer price index (CPI) weight.

Meanwhile, it said the inflation rate for the transport sector for August 2023 did not record any increase (0.0 percent) as compared to -0.4 percent in July 2023.

On core inflation, DoSM said it moderated to 2.5 percent in August 2023 versus 2.8 percent in July 2023, but it still surpassed the overall national inflation rate of two percent.

“The highest increase was recorded by the food and non-alcoholic beverages group with a 5.1 percent increase, followed by the restaurants and hotels group which rose 4.7 percent and transport (up 3.6 percent).

“Meanwhile, miscellaneous goods and services, as well as health increased 2.4 percent, respectively,” it said.

Compared with other countries, DoSM said the inflation rate of two percent in Malaysia was lower than that in the Eurozone (5.3 percent), the Philippines (5.3 percent), South Korea (3.4 percent), Indonesia (3.3 percent) and Vietnam (three percent).

However, the rate was higher than Thailand (0.9 percent) and China (0.1 percent), it added.

At the state level, chief statistician Datuk Seri Mohd Uzir Mahidin said seven states recorded increases above the national inflation level of two percent, namely Sarawak (3.4 percent), Putrajaya (2.7 percent), Perlis (2.4 percent), Perak (2.3 percent), Selangor (2.3 percent), Pahang (2.2 percent) and Melaka (2.1 percent), while the other nine states recorded growth below two percent.

On a month-on-month basis, DoSM said the headline inflation in August 2023 increased marginally to 0.2 percent against 0.1 percent in July 2023.

The increase was mainly contributed by housing, water, electricity, gas and other fuels, which rose 0.5 percent from no changes in July 2023, as well as health, which increased 0.5 percent from 0.2 percent in July 2023. – Bernama