Inflation in Malaysia was higher than expected in June, reaching 3.4 per cent, according to figures released by the Department of Statistics. The inflation rate for food and non-alcoholic beverages was 6.1 per cent, compared to 5.2 per cent in May.
Inflation in transport also soared to 5.4%, compared to 3.9% in May. Restaurants and hotels inflation soared to 5% in June, compared to 3.7% in May. Leisure and culture inflation was 2.2% in June.
High inflation was recorded in five domestic states, namely Putrajaya (8.1%), Selangor (4.3%), Johor (3.7%), Penang (3.4%) and Perlis (3.4%). Inflation was 3.6% in urban areas and 2.6% in rural areas.
The deterioration in domestic inflation has raised expectations of a September interest rate hike by the National Bank, which is very likely to raise rates again in September, possibly by 0.50%.
