Bank Negara Malaysia's (BNM) move to reduce inflation was successful when the latest reading showed the consumer price index (CPI) decreased to 2% in July.
It was the lowest reading since August 2021, driven by slower increases in restaurants and hotels and food and non-alcoholic beverages.
Meanwhile, core inflation (excluding prices of fresh food and government-controlled goods) also slowed to 2.8% from 3.1% previously.
Here are more details on inflation in July:
Food and non-alcoholic beverages fell to 4.4% from 4.7%
The transport sector slipped to -0.4% from 0%
The restaurant and hotel sector declined to 5.0% from 5.4%
Housing care, furniture and home appliances sector decreased to 1.9% from 2.3%
The other goods and services sector was unchanged at 2.6%
Recreation and culture sector down to 1.1% from 1.6%
The housing, water, electricity, gas and fuel sectors fell 1.7% from 1.8%
The education sector rose to 2.0% from 1.9%
Health sector unchanged at 2.0%
The communications sector fell to 3.7% from -3.6%
Clothing and footwear were unchanged at 0.1%
Alcoholic beverages and tobacco down to 0.5% from 0.6%
In addition, inflation in urban areas fell to 2.1% compared to 2.4% previously and rural areas remained unchanged at 1.9%.
Malaysia is one of the countries that recorded the lowest inflation compared to several other countries, Europe (5.3%), the United States (3.2%), the Philippines (4.7%), Indonesia (3.1%) and South Korea (2.3%).
