Second Finance Minister Johari Abdul Ghani said core inflation was still stable amidst concerns after the consumer price inflation had hit an eight year high in March.

"The inflation rate in March 2017 rose to 5.1 percent due to the low base effect of fuel prices," he said in a text message to Malaysiakini.

"The transport index increased by 23 percent because of the increase in fuel prices. RON95 in March 2016 was RM1.60 as compared to RM2.30 in March 2017, an increase of 70 sen.

"However, core inflation remained stable at 2.5 percent. The impact on the overall economy still very much depends on core inflation. As long as we can keep the rest of the component inflation items prices stable, the core inflation of the country will remain stable," he added.

As for fuel prices, Johari reiterated that the government could not do anything about it.

"It is very much depended on global oil price movement and nothing much the government can do. Any significant increase may cause the core inflation to increase."

The government will continue to monitor the prices of other component inflation items under the Ministry of Domestic Trade, Co-operatives and Consumerism, he added.

Annual inflation was 5.1 percent in March, the highest since touching 5.7 percent in November 2008.

Bank Negara said last month that inflation will likely average between three and four percent this year, but it may surge above four percent in some months.

"The index of transport group showed a significant increase of 23 percent on a year-on-year basis in March 2017, after rising 17.9 percent in February 2017," said chief statistician Mohd Uzir Mahidin in a statement yesterday.

"The index for food and non-alcoholic beverages which accounted 30.2 percent in the CPI weights, increased 4.1 per cent in March 2017," he said.

Mohd Uzir named six urbanised states especially impacted by the rise of index for food and non-alcoholic beverages.

"The index for food and non-alcoholic beverages rose 5 per cent in Malacca, 4.6 percent in Kuala Lumpur, 4.5 percent in Johor, 4.5 percent in Selangor and Putrajaya, 4.3 percent in Kedah and Perlis and 4.3 percent in Penang," he said.

Core inflation, which excludes most volatile items such as fresh food, as well as the administered prices of goods and services, recorded changes ranging from 2.3 percent to 2.5 percent during January to March 2017 compared to the same period the previous year, according to him.