Rise in transport, food prices fuels inflation to high of 3.2%

Household spending in food and non-alcoholic beverages rose by 3.2% in December, the department of statistics says.

PETALING JAYA: The rise in transport costs and food prices drove inflation to a high of 3.2% in December, the department of statistics said today.

It said the increase surpassed the average inflation rate of 1.9% for the period 2011 to 2021.

In a statement, chief statistician Mohd Uzir Mahidin said the Consumer Price Index (CPI) increased by 3.2% to 124.5 in December compared to 120.6 in the same month in 2020.

The rise was fuelled by a 7.5% hike in the transport group and a 3.2% increase in the food and non-alcoholic beverages group.

Uzir said the increase of the prices of food and non-alcoholic beverages was due to the higher prices of raw materials for the preparation of cooking at home, such as meat (especially chicken), milk, cheese and eggs.

“Heavy rains that occurred in several states such as Selangor, Kelantan, Terengganu, Pahang and Johor throughout December, following the transition of the northeast monsoon, led to the increase in food prices, especially vegetables, fish and seafood,” he said.

He said the inflation rate of 3.2% in December was also attributed to price increases in housing, water, electricity, gas and other fuels, furnishings, household equipment and routine household maintenance, and restaurants and hotels.

“All states recorded increases in CPI, with eight showing an increase above the national inflation level of 3.2%,” he said. - FMT