Malaysia's inflation remained steady in July compared to expectations for an increase with price increases led by restaurants although staple food items rose at a slower pace.
According to Statistics Malaysia, Malaysia's main Consumer Price Index (CPI) inflation rose 2.0% in July compared to last year.
The food and beverage sector accounted for nearly 30% of the overall index which rose at a slower pace of 1.6% compared to June's 2.0% increase.
Restaurant and accommodation services increased by 3.4% and the personal care group increased by 3.2% led by jewellery.
Inflation for the transport index which also includes fuel, vehicle purchases and public transport services rose at 1.2% in July which was the same rate as in the previous month following the rationalization of diesel subsidies.
Meanwhile, the sector which includes housing, water, electricity, gas and fuel increased by 3.2% in July which is the same rate of increase as in June.
However, official forecasts target a headline inflation rate of 2% to 3.5% in 2024 versus 2.5% in 2023 with core inflation at 2% to 3% versus an average of 3% in 2023.
