DOSM: Household Purchasing Power Declines By 16.7% Over Last Decade
Author Avatar

The purchasing power of Malaysia’s household consumption declined by 16.7% over the past decade to 83.3% in 2020, according to an analysis on the Consumer Price Index (CPI). These figures were revealed in a report released by the Department of Statistics Malaysia (DOSM).

Chief Statistician Dato Sri Dr Mohd Uzir Mahidin said that within the 12 main groups, the purchasing power for Alcoholic Beverages & Tobacco recorded the highest decrease by 40.6%. This was followed by Food & Beverages, which decreased by 25.8% in purchasing power to settle at 74.2%, and Restaurants & Hotels which decreased by 24.5% at 75.5%.

Meanwhile, the two groups of goods and services that recorded a purchasing power of more than 100% were Communications (102.6%) and Clothing & Footwear (107%). “This illustrates that households were able to enjoy communication services, clothing and footwear at cheaper prices as compared to 10 years ago,” said Mohd Uzir.

Besides that, it was found that the inflation for urban areas in 2020 rose more than in rural areas. As such, purchasing power in urban areas faced a bigger decrease by 17.1% compared to the 14.7% decline in rural areas.

As for the effect of Covid-19, Mohd Uzir highlighted that it was indirectly reflected as Malaysia recorded a negative inflation of 1.2% for 2020. The most affected group was transport (-10%), followed by housing, water, electricity, gas and other fuels (-1.7%), and clothing and footwear (-0.8%). However, there were groups that recorded high inflation like miscellaneous goods and services (2.7%), food and beverages (1.3%), and communication (1.1%).

While the inflation for food and beverages did remain in the positive at 1.3%, this was the lowest inflation rate recorded in a decade. The highest inflation for this group was recorded in 2011 at 4.8%.

(Source: DOSM)

4 2 votes
Article Rating


Comments (0)

Notify of
Inline Feedbacks
View all comments
Top Household Budgeting Articles
Top Household Budgeting Articles
Post Image
How Much Does Water Cost in Malaysia?
Ahmad Mudhakkir
- 25th January 2019
In light of the recent news that Selangor and the Federal States' water supply might get more expensive, we check out how much the rest of the country is paying for their water supply.
Post Image
The Government Is Offering RM200 Rebate On Energy Efficient Appliances – Claim It Now On Shopee
Jacie Tan
- 4th January 2021
The SAVE 2.0 programme, which allows Malaysians to claim RM200 vouchers to use on purchases of energy-efficient air […]
Post Image
6 Part-time Ways to Make Money
Denise Chan
- 25th October 2018
Have you suddenly found yourself out of a job, strapped for cash or making the decision to be a stay-at-home-parent? Here are some ways on how to earn money online in Malaysia for extra cash without a full-time job.
Post Image
SPAN, Shopee Collaborate On Jimat Air 1.0, Offer RM200 Rebate For Washing Machines
Alex Cheong Pui Yin
- 17th September 2021
The government has teamed up with e-commerce platform Shopee to roll out the Jimat Air 1.0 initiative, which […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image