Malaysia's consumer price index in August increased 1.5 percent from a year earlier, faster than the previous month's pace, government data showed today.

The figure was slightly above the 1.3 percent median forecast in a Reuters poll. July's annual rate was 1.1 percent.

August's higher inflation rate stemmed from increased prices of food, alcoholic beverages and tobacco, which offset lower transportation costs, according to the statistics department.

In February, the annual inflation rate reached a seven-year peak of 4.2 percent, but it has since moderated as the effects of the goods and services tax imposed in April 2015, have faded.

In July, Malaysia's central bank cut its inflation projection for the year to 2-3 percent from 2.5-3.5 percent.

- Reuters