{
  "id": 19116958,
  "title": "Lower inflation does not mean lower cost of living, CPI only tells part of story",
  "url": "https://urgent.news/2026/11/09/lower-inflation-does-not-mean-lower-cost-of-living-cpi-only-tells",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-09T07:57:49.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/11/1573973/lower-inflation-does-not-mean-lower-cost-living-cpi-only-tells"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Malaysia's inflation rate has decreased, but that doesn't necessarily mean everyday expenses are cheaper for families, illustrating the distinction between rising consumer prices and actual affordability of basic necessities. The Consumer Price Index (CPI) is Malaysia's main tool for tracking inflation, measuring the average change in prices of a typical assortment of goods and services. However, it might not fully reflect each household's unique spending habits, income levels, and financial responsibilities. This is likely why Malaysians still feel financially strained even when official inflation figures suggest price growth is decelerating.\n\nIn its 2025 Annual Report, Bank Negara Malaysia noted that Malaysia's headline inflation averaged 1.4% in 2025, its lowest in five years. Yet, the central bank admitted that the high cost of living remained a significant concern for many households. In the first nine months of 2026, inflation averaged 1.8%, with core inflation at 2%. The bank explained that this difference arises partly due to how households perceive price changes, particularly through frequently bought items such as food and beverages, which strongly influence their sense of inflation.\n\nTo better capture this experience, economists use indicators like the Everyday Price Index (EPI), which gives more weight to regularly purchased items in the CPI. Bank Negara emphasized that the EPI better reflects price changes that align with households' day-to-day experiences. Additionally, the Perceived Price Index (PePI) often shows a higher inflation rate than both the CPI and EPI, as it only includes items that have seen price increases while excluding those that have dropped in price. This demonstrates how price hikes leave a stronger, more lasting impression on households due to memory bias.",
  "summary": "KUALA LUMPUR: While Malaysia’s inflation rate has moderated, the easing trend does not necessarily translate into a lower cost of living for households, highlighting the difference between changes in consumer prices and the actual affordability of everyday necessities.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}