KUALA LUMPUR: The Consumer Price Index (CPI) rose by 3.4 per cent year-on-year (y-o-y) to 123.2 in June 2021 versus 119.1 in June 2020, said the Department of Statistics Malaysia (DoSM).

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said CPI remained positive for the fifth consecutive month since February this year due to the lower base effect last year as a result of the decline in fuel prices for private vehicles.

He said the transport group was the main contributor to the increase in the headline inflation at 16.6 per cent, followed by housing, water, electricity, gas and other fuels (3.2 per cent); furnishings, household equipment and routine household maintenance (2.0 per4 cent), and food and non-alcoholic beverages (1.3 per cent).

On a monthly basis, the CPI increased by 0.1 per cent as compared to May 2021, attributed by food and non-alcoholic beverages (0.3 per cent) and miscellaneous goods and services (0.1 per cent).

"This slow momentum was due to the implementation of the Movement Control Order (MCO) 3.0 and closure of operations for non-essential sectors throughout June 2021 had eased the inflation pressures," Mohd Uzir said.

Meanwhile, the CPI for the second quarter of 2021 climbed 4.1 per cent to 123.1 compared with 118.2 in the same quarter of the preceding year, and on a quarterly basis, the CPI increased 0.5 per cent against the first quarter of 2021.

Citing the Food and Agriculture Organisation, he said global food prices increased at a rapid rate over the past decade and are exacerbated by the problems of countries around the world that still struggling to deal with the spread of the COVID-19 pandemic.

Additionally, the increase in the prices of some of the world's major commodities due to lack of supply and rising shipping costs contributed to the increase in the index of food and non-alcoholic beverages.

The double-digit increase in the blended cooking oil index for the second consecutive month since May 2021 proved that Malaysia is also experiencing the pinch of the global price hike, he said.

"Core index rose 0.7 per cent in June 2021 compared with the same month in 2020, supported by the increase in housing, water, electricity, gas and other fuels (3.2 per cent), furnishings, household equipment and routine household maintenance (2.0 per cent), food and non-alcoholic beverages (1.3 per cent), and transport (1.0 per cent).

"The recreation services and culture (0.6 per cent), health (0.5 per cent), education (0.5 per cent), restaurants and hotels (0.5 per cent), and miscellaneous goods and services (0.3 per cent) also contributed to the rise in the core index, which excludes most volatile items of fresh food as well as administered prices of goods and services," he added.

Mohd Uzir said the CPI without fuel increased 1.5 per cent in June 2021 to 113.9 compared with112.2 in the same month of the preceding year, which covers all goods and services except unleaded petrol RON95, unleaded petrol RON97 and diesel.

"Seven states namely Terengganu (4.4 per cent), Kelantan (4.1 per cent), Pahang (3.9 per cent), Perak(3.6 per cent), Selangor and Federal Territory (FT) of Putrajaya (3.5 per cent), Negeri Sembilan (3.5 per cent),and Kedah and Perlis (3.5 per cent) surpassed the national CPI rate of 3.4 per cent in June 2021 versus the same month in 2020.

"All states registered an increase in the index of food and non-alcoholic beverages, while the highest increase was recorded by Terengganu at 2.0 per cent, followed by Selangor and FT Putrajaya (1.9 per cent), Kelantan (1.7 per cent) and FT Kuala Lumpur (1.4 per cent)," he said.

-- BERNAMA