KUALA LUMPUR (Sept 23): Malaysia's inflation, as measured by the consumer price index (CPI), rose 3.1% in August from a year earlier. CPI grew mainly on costlier liquor and tobacco products, according to the Statistics Department.

In a statement today, the department said the CPI rise was also due to more expensive heathcare services, besides higher restaurant and hotel charges.

Cumulative eight-month CPI rose 1.9% from a year earlier, and in monthly terms, August CPI was unchanged compared to the preceding month.

In July, the CPI rose 3.3% from a year earlier.

August's on-year 3.1% CPI rise came in higher than economists' forecast. In a note today, BofA Merrill Lynch Global Research economist Chua Hak Bin said the firm had anticipated inflation to come in at 2.8%.

"Malaysia's headline inflation probably eased to +2.8% yoy in August, from +3.3% yoy in July, primarily driven by the lowering of fuel prices for the month," Chua said.