Malaysia’s inflation eased more than anticipated in October, largely due to slower price growth in food and housing-related costs, official data revealed on Friday.

The consumer price index (CPI), the country’s primary measure of inflation, increased by 1.3% year-on-year, the Department of Statistics Malaysia (DOSM) said.

This is down from September’s 1.5% annual rate and below the Bloomberg median forecast.

The latest data marked Malaysia’s 27th straight month of headline inflation remaining below 2%, giving policymakers room to prioritise growth.

The food and beverage index, which makes up nearly 30% of the CPI, rose 1.5% in October, down from September’s 2.1% increase, The Edge Malaysia reports.

Prices for food consumed outside the home slowed, while food-at-home costs remained unchanged from September, as higher prices for items like fish, seafood, oils, and fats were offset by declines in vegetables, meat, and cereals.

Furthermore, inflation for housing, water, electricity, gas, and other fuels slowed to 1.1% in October, down from 1.5% in September. While rents and water services rose, the overall category was pulled lower by ongoing declines in electricity, gas, and other fuels.

Other key spending categories, information and communication, clothing and footwear, and transport, also recorded year-on-year decreases.

However, the category covering personal care, social protection, and miscellaneous goods accelerated to 6%, while prices for restaurants and accommodation services increased by more than 3%, both rising compared to September.

In addition, insurance and financial services climbed 5.6%, and education rose 2.4%, remaining unchanged from September.

Malaysia’s core inflation, which excludes volatile food and fuel prices to gauge underlying demand, rose slightly to 2.2% in October from 2.1% in September.

Bank Negara Malaysia projects that headline inflation will stay within a 1.5% to 2.3% range for the full year, according to its latest guidance.