Malaysia Consumer Price Index - 25 September 2023

Remained unchanged in August; potential upside risks to prices amid growing food insecurity

The headline inflation remained at a two-year low of 2.0% in August, matching house forecast and market consensus

  • Despite plateauing around its 10-year average on a YoY basis, prices increased by 0.23% MoM (Jul: 0.08%) due to a sharp increase in housing (weight: 18.1%), water (0.9%), electricity (2.7%) and health (1.9%) indices. However, food (28.4%) inflation continued to moderate by 0.07% MoM (Jul: 0.39%).
  • After hitting a peak of 4.2% in November 2022, core inflation has steadily moderated to 2.5% YoY (Jul: 2.8%), its lowest level since May 2022. However, the core component increased to a three-month high of 0.2% MoM (Jul: 0.0%).