Petaling Jaya: Malaysia’s inflation eased to 1.7% in December 2024, with the consumer price index (CPI) standing at 133.4, compared to 131.2 in the same month last year.
Inflation in December 2024 was driven by slower growth in the core groups of personal care, social security and miscellaneous goods and services (3.2%); Entertainment, sports and culture (1.7%); health (1.1%) and furnishings, household appliances and routine household maintenance (0.4%).
Meanwhile, inflation for restaurants and accommodation services and food and beverages rose at a higher rate of 2.9% and 2.7% in November 2024, compared to 2.8% and 2.6%, respectively.
Malaysia’s Chief Statistician Datuk Seri Mohd Uzir Mahidin said inflation for information and communications declined to negative 5.4% in December 2024 (November 2024: -3.9%). This was due to a negative 6.4% (November 2024: -4.4%) decline in the main subgroup of information and communication services.
Clothing and footwear remained in negative territory and recorded negative 0.5% (November 2024: -0.3%). Meanwhile, housing, water, electricity, gas and other fuels (3.2%); education (1.5%); alcoholic beverages and tobacco (0.8%); Insurance and financial services (0.5%) and transportation (0.4%) grew at the same rate as the previous month.
The food and beverages group, which contributes 29.8% to the total CPI weight, expanded by 2.7% in December 2024 (November 2024: 2.6%). The main subgroup of food at home increased by 0.9% (November 2024: 0.6%) due to inflation in the expenditure category of vegetables, which registered a growth of 3.6% (November 2024: 1.1%). The increase in vegetable prices is influenced by adverse weather conditions and persistent rains, affecting production in key production areas such as the Cameroon Highlands.
Vegetables that recorded higher year-on-year growth in December 2024 were long beans, 12.7% (November 2024: 3.3%), cabbage, 11.7% (November 2024: 8.5%) and okra, 11.1%. (November 2024: 1.8%).
The meat expenditure category declined by a negative rate of 0.3% in December 2024 (November 2024: 1.6%). The decline in the expenditure category was contributed by local beef, which recorded a negative 3.2% in December 2024 (November 2024: -1.8%). Chicken, as the largest component (32.6%) of the meat expenditure category, recorded a slow growth of 0.9% (November 2024: 4.8%).
Based on data collected by the Department of Statistics, Malaysia, the average price of standard chicken in Malaysia for December 2024 was RM10.32 per kilogram, compared to RM10.18 per kilogram in December 2023 (November 2024: RM10.41). Meanwhile, the average price of standard chicken in Peninsular Malaysia for December 2024 stood at RM9.52 per kilogram, compared to RM9.44 per kilogram in December 2023 (November 2024: RM9.69).
Additionally, the main subgroup of meals away from home increased by 4.8%, the same rate as the previous month. Items that recorded growth in December 2024 included cooked vegetables, 6.0% (November 2024: 5.1%), rice with side dishes, 4% (November 2024: 3.8%) and satay, 3.9% (November 2024: 3.5 %) were included.
Moreover, inflation for transport stood at 0.4% in December 2024 compared to November 2024. This growth was contributed by the main subgroup of operations of personal transport equipment, which grew by 1.0% in December 2024 (November 2024: 0.9%). Items that recorded growth included car wash services, 5.7% (November 2024: 4.6%); car servicing, 5.6% (November 2024: 5.1%) and motorcycle repair, 3.2% (November 2024: 3.2%). Additionally, the subgroup of vehicle purchases declined by negative 0.9% (November 2024: -0.6%) due to price cuts given as rebates to new car buyers.
The inflation rate of diesel remains at 15% like last month. The average price of diesel in Peninsular Malaysia was RM2.95 per liter in December 2023, compared to RM2.15 per liter in December 2023 (November 2024: RM2.95). However, the average price of diesel for Sabah, Sarawak and Federal Territory (FT) Labuan stood at RM2.15 per litre. Furthermore, unleaded petrol RON97 inflation declined to negative 7.5% (November 2024: -8.1%). The average price of unleaded petrol RON97 was RM3.21 per liter in December 2024, compared to RM3.47 per liter in December 2023 (November 2024: RM3.19).
Mohammad Uzir said inflation in most states was recorded below the national inflation level of 1.7%. However, inflation in five states was above the national inflation level, namely Penang (2.6%), Pahang (2.3%), Selangor (2%), Johor (1.8%) and Sarawak (1.8%). An increase in the inflation of food and beverages was recorded in all the states. The highest rate was recorded in Selangor at 4.1%, followed by FT Kuala Lumpur (3.1%), Johor (3%), Terengganu (2.9%) and FT Putrajaya (2.9%). Meanwhile, other states saw national inflation on food and beverages rising below 2.7% in December 2024.
