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 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.
