KUALA LUMPUR, July 19 (Xinhua) -- Malaysia's consumer prices index (CPI) in June rose 3.6 percent from a year earlier, slower than market expectations.
According to data released by Malaysian statistic department Wednesday, the inflation rate was slightly eased compared with 3.9 percent in May.
Core inflation rose 2.5 percent in June compared to the previous year, the government data showed.
The inflation in June was mainly driven by transport (10.5 percent), food & non-alcoholic beverages (4.3 percent).
Other groups that recorded increases included recreation services & culture (3 percent), health (2.6 percent), restaurants and hotels (2.5 percent) and housing, water, electricity, gas & other fuels (2.2 percent).
For the first half, CPI grew 4.1 percent as compared to the same period last year. The index for food & non-alcoholic beverages was the main contributor.
"June's inflation came in slightly below our forecast of 3.7 percent. We had expected the fuel sub-segment and food items to be the main drivers of this CPI growth trend, which has moderated from highs experienced at the start of the year," Ram rating agency's economist Kristina Fong told Xinhua.
She opined that the main reason for this declining inflationary pressure comes from the lower pump prices compared to last year.
"However on the flipside, food inflation seems to be driving upward inflationary pressures, especially during the months of May and June, which is attributed mainly to temporary festive price effects," she added.
She expected the food and fuel components to continue to drive the overall trend in inflation this year and the rating agency's overall inflation forecast for 2017 stands at 3.8 percent.
