KUALA LUMPUR: Malaysia's headline inflation declined to 4.5 per cent in September from 4.7 per cent in August, as lower inflation in the prices of fresh chicken, fresh vegetables, and fuel more than offset higher core inflation.
In a statement today, Bank Negara Malaysia said core inflation increased to 4.0 per cent from 3.8 per cent in August, mainly reflecting higher inflation in the prices for repair and maintenance of personal transport, food away from home, and bread and bakery products.
"Core inflation increased more moderately by 0.3 per cent on a month-on-month (MoM) basis," it said.
Bank Negara said the Index of Wholesale and Retail Trade (IOWRT) continued to record double-digit but lower growth of 27 per cent in August 2022 from 33.4 per cent in July.
"The strong growth was driven mainly by the motor vehicle segment.
"In addition to the low base in August 2021, when showrooms were closed during the implementation of the National Recovery Plan (NRP) in the first half of the month, continued strength in purchases of motor vehicles also provided a lift to growth.
"This, together with stronger activity in the retail segment, contributed to the acceleration in MoM seasonally adjusted growth of 3.1 per cent," it said.
Bank Negara said net financing grew by 5.6 per cent in end-September, reflecting lower growth in both outstanding loans at 6.4 per cent and corporate bonds at 3.5 per cent.
"Growth in outstanding household loans remained unchanged at 6.6 per cent, reflecting steady growth across most purposes.
"Despite some moderation, loan disbursements continued to record high growth amid sustained repayment trends," it said.
Bank Negara said that for businesses, growth in outstanding loans declined to 5.2 per cent in September from 6.8 per cent in August, partly due to a higher base effect.
"Nonetheless, loan disbursements remained sustained, driven particularly by the wholesale trade, consumer manufacturing, and civil engineering segments," it added.