KUALA LUMPUR, July 24 (Xinhua) -- Malaysia's inflation, as measured by the consumer price index (CPI), rose 1.5 percent year-on-year in June, official data showed Wednesday.

Malaysian Statistics Department said in a statement that the abolishment of the goods and services tax (GST) to zero-rated in June last year led to the increase in some of the index of the main groups.

According to the statement, furnishings, household equipment and routine household maintenance in June rose 3.1 percent year-on-year; recreation services and culture grew 2.7 percent; food and no-alcoholic beverages increased by 2.3 percent; housing, water, electricity, gas and other fuels went up 2.3 percent.

On a monthly basis, CPI remained unchanged as compared to May.

As for the second quarter, the CPI grew 0.7 percent.

On a quarterly basis, the CPI increased 0.4 percent as compared to the first quarter.

Core index, which excludes most volatile items of fresh food as well as administered prices of goods and services, increased 1.9 percent in June as compared to the same month of the previous year.

Analysts expects Malaysia's headline inflation to hover near the current level in the coming months.

"Headline and core inflation rose sharply in June due to a low base on account of last year's changes in tax policy. Both measures were flat on a sequential basis. Importantly, the trend in core inflation remains benign and we do not expect this to change," ANZ Research said in a note Wednesday.

The research house said the delay in removal of the price cap for RON95 gasoline will limit any upside risks from higher-than-expected global oil prices.