The consumer price index – the country’s primary gauge of inflation – climbed 1.5 per cent in August from a year earlier, the Department of Statistics said in a statement.

By comparison, in July there was a 1.1 per cent year-on-year increase. Economists had predicted a median 1.3 per cent annual rise.

According to a report in the Nikkei Asian Review (NAR), on a seasonally adjusted basis, the index rose 0.4 per cent in August from July.

Economists, according to the NAR report, said inflation was likely to remain benign through this year, allowing Bank Negara Malaysia to focus on risks of decelerating growth.

It said inflation this year would likely range between 2.5 per cent and 3.5 per cent compared with 2.1 per cent last year.

“The pick-up in inflation takes the year-to-date average to 2.3 per cent and remains consistent with our full-year forecast of 2.1 per cent, which is similar to 2015,” Nomura Holdings said in an investor note.

“We maintain our view that Bank Negara Malaysia will cut its policy rate again in November given the drag on growth.”

Malaysia’s central bank kept the overnight policy rate steady at 3.00 per cent at its last meeting earlier this month.

The food and non-alcoholic beverage index, which carries the largest weighting at 30.2 per cent, rose 3.5 per cent year-on-year in August while non-food prices edged 0.6 per cent higher.

The transport index fell 6.7 per cent . Core inflation, which excludes most volatile items including fresh food and energy prices, rose 2.2 per cent in August, said the NAR report.

On a seasonally adjusted month-on-month basis, the food and non-alcoholic beverages index gained 0.3 per cent in August while the non-food group rose 0.5 per cent from July.