KUALA LUMPUR (Sept 23): Malaysia’s headline inflation eased in August 2024, driven by increased prices at restaurants, and costlier utilities and food, according to the Department of Statistics Malaysia (DOSM) on Monday.

The consumer price index (CPI) — Malaysia’s main gauge of inflation — rose 1.9% in August when compared to the same month in 2023, the official data showed. That compares to the 2.0% increase predicted in a Bloomberg survey of economists and July's 2.0% year-on-year rise. 

The food and beverages group, which contributes nearly 30% of the total CPI weight, increased by 1.6% in August 2024, the same rate as recorded in July.

Inflation for transport increased by 1.3% in August 2024 as compared to 1.2% in July following diesel subsidy re-targeting.

Core inflation, which measures domestic-driven inflation by excluding volatile items and other price-administered items, came in at 1.9% in August, the same pace as in July.

The official forecast calls for a headline inflation rate of 2% to 3.5% in 2024, versus 2.5% in 2023, with core inflation at 2% to 3% against the 3% average in 2023.

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