The consumer prices rose slightly in July, up by 4.1 percent compared to the same period a year ago according to official data Wednesday after the central bank said inflation had peaked.

It represented a small gain on June inflation of 3.9 percent and well down on the 4.8 percent recorded in March, the highest level in six years.

Bank Negara chief Zeti Akhtar Aziz said this week that the country's inflation had peaked and that the rate will moderate in the second half of the year.

The central bank in April raised its key interest rates by 25 basis points to 3.50 percent in a bid to combat rising inflation following steep fuel price hikes.

First hike in 7 years

But last month it kept interest rates unchanged at 3.5 percent, citing easing inflation and prospects for slowing economic growth.

The central bank has previously raised rates in February by 25 basis points to 3.25 percent and by 30 basis points to 3.0 percent last November, in what was the first hike in seven years.

For the seven months to July inflation averaged 3.9 percent compared to the same period last year, with increases in all the main indices except clothing and footwear, and communications, the statistics department said.