KUALA LUMPUR: The Consumer Price Index (CPI) increased 3.2% in December 2021 to 124.5 as against 120.6 in the same month of the preceding year due to the low base effect, according to the Statistics Department.

       The increase also surpassed the average inflation for the period 2011 to 2021 of 1.9%.

       Meanwhile, the CPI for the fourth quarter of 2021 inclined 3.2% to 124.1 as compared to 120.3 in the same quarter of the preceding year. In terms of quarterly comparison, the CPI increased to 1.2% against the third quarter of 2021.

       On a monthly basis, the CPI increased 0.4% compared with November 2021.

       Annual inflation rate in 2021 increased 2.5% compared with a negative 1.2% in 2020.

       Chief statistician Datuk Seri Mohd Uzir Mahidin (pic) said: “Other than the increases in food and non-alcoholic beverages group (3.2%) and transport group (9.5%), the inflation rate of 3.2% in December was also attributed to the higher price in housing, water, electricity, gas and other fuels group (3.4%); furnishings, household equipment and routine household maintenance (2.7%) as well as restaurants and hotels (1.3%)”.

       He added that the food and non-alcoholic beverages, which contributed 29.5% to household spending, showed a significant increase of 3.2% in December, with both the price index of food at home and food away from home recorded increases of 4.1% and 2.2%, respectively.

       The increase of food and non-alcoholic beverages group price index was due to higher prices of raw materials for the preparation of cooking at home.

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

       “The increase is attributed to a direct effect of supply shortages due to the weather factor,” he noted in a statement.

       Continuous heavy rains that resulted in floods as well as landslides that occurred in vegetable producing states such as Pahang also contributed to the price increases and directly contributed to the increase in national inflation.

       However, the implementation of Skim Harga Maksimum Keluarga Malaysia as announced by the government from Dec 7-31 has eased the inflation of this group from continuing to soar.

       Mohd Uzir said the slower increase in the transport group price index as compared to November 2021 (12.7%) was due to the higher price of unleaded petrol RON95 in December 2020 at RM1.74 per litre, which has narrowed the difference between the ceiling price of unleaded petrol RON95 set by the government in March 2021 (RM2.05).