Malaysia's inflation rate in 2021
The implementation of MCO (Movement Control Order) 2.0 and 3.0 resulted in an increase of 2.5% in inflation rate from early to mid 2021, higher from 2020’s inflation rate which was at -1.2%.
Due to last year’s low base effects, inflation rate rose to its highest of 4.7% in April 2021, mainly from the increase in transportation groups and food prices. Prices of animal feed have risen causing the prices of poultry produce to inflate furthermore from the average prices in 2020. This is from the global increase in raw material prices.
Towards the end of the year in 2021, food prices especially vegetables and fishes saw an increase due to the aftermath of floods and landslides in certain states in Peninsular Malaysia during monsoon season. On top of that, price of consumer oil saw a significant hike due to a rise in palm oil and vegetable prices, a result from labour shortages and unfavourable weather conditions. A contributor to headline inflation rates. Furthermore, the monthly electricity discount campaign for national consumers under PEMULIH for 3 months ended in September 2021, putting onward pressure onto the nation’s inflation rate.
With the abolishment of interstate travel restrictions, all economic sectors resumed its operations again on the 11th of October. This contributed to the country’s economic recovery, especially in the distribution and retail industry. We see an increase of 3.3% in inflation rate in November that year. The main contributor would be the food and beverage group, with all subgroups recording an increase between 0.7% to 9.3% increment. The hike in vegetable prices is caused by several factors such as weather conditions, rising cost of fertilizers, and changes in business strategies affecting productions.
The headline inflation rate for December 2021 increased (3.2%) with the main contributor being from the transportation group (9.5%), housing, water, electricity, gas and other fuel materials (3.4%), food and beverage (3.2%), household furniture, consumer products and everyday household maintenance (2.7%), restaurant and hotel business (1.3%).
Due to last year’s low base effects, inflation rate rose to its highest of 4.7% in April 2021, mainly from the increase in transportation groups and food prices. Prices of animal feed have risen causing the prices of poultry produce to inflate furthermore from the average prices in 2020. This is from the global increase in raw material prices.
Towards the end of the year in 2021, food prices especially vegetables and fishes saw an increase due to the aftermath of floods and landslides in certain states in Peninsular Malaysia during monsoon season. On top of that, price of consumer oil saw a significant hike due to a rise in palm oil and vegetable prices, a result from labour shortages and unfavourable weather conditions. A contributor to headline inflation rates. Furthermore, the monthly electricity discount campaign for national consumers under PEMULIH for 3 months ended in September 2021, putting onward pressure onto the nation’s inflation rate.
With the abolishment of interstate travel restrictions, all economic sectors resumed its operations again on the 11th of October. This contributed to the country’s economic recovery, especially in the distribution and retail industry. We see an increase of 3.3% in inflation rate in November that year. The main contributor would be the food and beverage group, with all subgroups recording an increase between 0.7% to 9.3% increment. The hike in vegetable prices is caused by several factors such as weather conditions, rising cost of fertilizers, and changes in business strategies affecting productions.
The headline inflation rate for December 2021 increased (3.2%) with the main contributor being from the transportation group (9.5%), housing, water, electricity, gas and other fuel materials (3.4%), food and beverage (3.2%), household furniture, consumer products and everyday household maintenance (2.7%), restaurant and hotel business (1.3%).
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