Malaysia’s Inflation Rises Slightly to 1.9% in October 2024

Stay connected with BizTech Community—follow us on Instagram and Facebook for the latest news and reviews delivered straight to you.

Malaysia’s inflation rate edged up to 1.9% in October 2024, compared to 1.8% in September, as reported by the Department of Statistics Malaysia (DoSM). The Consumer Price Index (CPI) also increased to 133.4, up from 130.9 in October 2023, reflecting steady upward pressure on consumer prices.

Key Drivers of Inflation

Chief Statistician Datuk Seri Dr. Mohd Uzir Mahidin attributed the rise to higher prices in key categories:

• Food and beverages: Up 2.3%
• Personal care, social protection, and miscellaneous goods/services: Up 3.4%
• Restaurant and accommodation services: Up 2.8%
• Recreation, sport, and culture: Up 2.0%

Other sectors, including health (1.4%), transport (0.7%), and furnishings and household maintenance (0.5%), experienced slower rates of increase.

Declines and Stable Categories

• Information and communication: Inflation dropped to -1.7% (September: 0.4%), driven by a 1.8% decline in communication services.
• Clothing and footwear: Continued to post negative inflation at -0.2%.
• Housing, water, electricity, gas, and fuels: Held steady at 3.1%, the same rate as the previous month.

Transport Inflation Slows

Inflation in the transport sector eased to 0.7%, down from 1.1% in September. This was largely due to slower growth in costs associated with personal transport equipment.

Key transport-related price movements included:

• Diesel: Price increases moderated to 15.0% (September: 16.7%), with an average price of RM2.95 per litre, up from RM2.15 in October 2023.
• Unleaded petrol RON97: Prices dropped to RM3.19 per litre, down from RM3.47 in October 2023.

State-Level Inflation

Four states recorded inflation above the national average:

• Pulau Pinang: 3.1%
• Pahang: 2.7%
• Selangor: 2.3%
• Sarawak: 2.1%

Monthly and Core Inflation

On a month-to-month basis, inflation rose by 0.2% in October compared to September 2024, driven by:

• Food and beverages: Up 0.8%
• Personal care and education: Both up 0.2%

These increases were partially offset by declines in:

• Information and communication: -2.1%
• Transport: -0.2%
• Household furnishings and recreation: Both down -0.1%

Core inflation, which excludes volatile items, remained steady at 1.8% for October 2024.

Regional and Global Comparison

Malaysia’s inflation rate of 1.9% is lower than Vietnam (2.9%) and the Philippines (2.3%) but higher than Indonesia (1.7%), South Korea (1.3%), Thailand (0.8%), and China (0.3%).

Outlook

The slight rise in inflation reflects increasing costs in essential goods and services, particularly food and personal care. While core inflation remains stable, the overall trend signals ongoing challenges in managing price pressures. Policymakers will need to monitor global and domestic factors closely, especially with Malaysia’s inflation rate sitting mid-range compared to regional peers.