Malaysia’s November 2024 Inflation Falls to 1.8 Pct
Inflation Rate Declines for the First Time since August 2021
Malaysia’s inflation rate for November 2024 has decreased to 1.8 per cent, down from 1.9 per cent in October this year, according to the Department of Statistics Malaysia (DOSM). This is the first decline in inflation since August 2021.
Attribution to Decline
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the decline to inflation in the main group of information and communication, which fell by 2.3 per cent. This was followed by the inflation for transport (-0.2 per cent) and clothing and footwear (-0.1 per cent).
Core Inflation Remains Unchanged
Core inflation, which excludes volatile items, increased at the same rate at 1.8 per cent in November 2024 as compared to October 2024. The increase was due to food and beverages (3.7 per cent); personal care, social protection and miscellaneous goods and services (3.4 per cent) and restaurant and accommodation services (2.8 per cent).
Yearly Comparison
On a yearly basis, Malaysia’s inflation rate for November 2024 has increased to 1.8 per cent from 1.5 per cent in November 2023. The consumer price index (CPI) for November 2024 inched down to 133.3, compared to 130.9 in the same period last year.
Main Groups and Subgroups
The increase in inflation in November 2024 was driven by a slower increase in the main groups of health (1.2 per cent) and transport (0.4 per cent), while inflation for food and beverages increased at a higher rate of 2.6 per cent as compared to 2.3 per cent in October 2024. The main group of housing, water, electricity, gas and other fuels also showed a higher increase in November 2024, at 3.2 per cent compared to 3.1 per cent in the previous month.
Inflation by Sector
Inflation for information and communication continued to decrease to a negative 3.9 per cent in November 2024 (October 2024: -1.7 per cent) due to the decline in inflation for main subgroup of information and communication services at negative 4.4 per cent (October 2024: -1.8 per cent). Clothing and footwear remained at a negative territory and posted negative 0.3 per cent (October 2024: -0.2 per cent).
Inflation by State
Regarding the inflation at the state level, the chief statistician said that inflation for five states was above the national inflation level of 1.8 per cent, namely Penang (2.9 per cent), Pahang (2.4 per cent), Selangor (2.1 per cent), while inflation in Johor and Sarawak grew by 1.9 per cent.
Inflation Comparison with Other Countries
In comparison to inflation in other selected countries, inflation in Malaysia (1.8 per cent) was lower than Vietnam’s 2.8 per cent and the Philippines at 2.5 per cent. However, the rate was higher than Indonesia (1.6 per cent), Republic of Korea (1.5 per cent), Thailand (1.0 per cent) and China (0.2 per cent).
Conclusion
Malaysia’s November 2024 inflation rate has declined to 1.8 per cent, the first decline since August 2021. The decrease was attributed to inflation in the main group of information and communication, transport, and clothing and footwear. Core inflation remained unchanged at 1.8 per cent, while the main groups of health, transport, and housing, water, electricity, gas and other fuels showed slower increases.
FAQs
Q: What was the inflation rate in Malaysia for November 2024?
A: The inflation rate in Malaysia for November 2024 was 1.8 per cent.
Q: What was the main reason for the decline in inflation?
A: The main reason for the decline in inflation was the decrease in inflation in the main group of information and communication, transport, and clothing and footwear.
Q: What was the core inflation rate in November 2024?
A: The core inflation rate in November 2024 remained unchanged at 1.8 per cent.
Q: How did inflation rates compare with other selected countries?
A: Inflation rates in Malaysia were lower than Vietnam’s 2.8 per cent and the Philippines at 2.5 per cent, but higher than Indonesia (1.6 per cent), Republic of Korea (1.5 per cent), Thailand (1.0 per cent), and China (0.2 per cent).