PETALING JAYA: Malaysia’s 2021 inflation rate had increased by 2.5%, said the Department of Statistics Malaysia.
It said a total of 184 food items out of 552 in the Consumer Price Index (CPI) “basket” recorded increases.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin (pix) said the Covid-19 pandemic has affected people’s daily lives.
However, the government’s efforts in providing free vaccinations helped restore business and consumer confidence.
The lifting of interstate travel bans and restoration of all economic sectors from Oct 11 contributed to national economic recovery, especially in the distribution and retail sectors.
Mohd Uzir said the 2.5% inflation rise was contributed by transport (11%); food and beverages (1.7%); furnishings, household equipment and routine household maintenance (1.6%) and housing, water, electricity, gas and other fuels (1.5%) which contributed 72% to the total CPI weight.
The discontinuation of the monthly electricity bill discounts that was given to domestic consumers under the National People’s Wellbeing and Economic Recovery Package, which was implemented for three months ending in September, also exerted upward pressure on the national inflation in 2021.
All states registered increases in inflation, with seven of them showing an increase above the national inflation level of 2.5%.
The highest inflationary increase by state was recorded by Terengganu (3.4%) and Federal Territory of Kuala Lumpur at 2%, while Sabah and Federal Territory of Labuan recorded 1.6%.
“The increase was mainly due to higher prices of chicken, eggs, cooking oils and fish, as well as seafood in 2021, as compared with the preceding year.
“Inflation for urban areas in 2021 rose 2.4% compared with -1.1% the previous year.
“Among the major contributors to the increase in overall index were the transport group (10.9%); food and beverages (1.8%); furnishings, household equipment and routine household and maintenance (1.8%) and housing, water, electricity, gas and other fuels (1.6%).
“Inflation in rural areas increased 2.6% in 2021 as compared with -1.5% in 2020,” he said.