ZCZC
BCN-43
MALAYSIA-ECONOMY-INFLATION
Malaysia’s inflation up 0.9 pct in July
KUALA LUMPUR, Aug. 24, 2018 (BSS/Xinhua) – Malaysia’s July consumer price
index (CPI) rose 0.9 percent from a year earlier, official data showed
Friday.
According to Malaysian Statistics Department, the increase in the overall
index was mainly due to higher price for transport, which increased by 6.7
percent.
Meanwhile, housing, water, electricity, gas and other fuels grew 2 percent;
education as well as restaurant and hotels also went up 1 percent
respectively.
Food and non-alcoholic beverages, which accounted 29.5 percent in the CPI
weights, rose 0.7 percent.
On a monthly basis, CPI increased 0.2 percent as compared to June.
For the period January to July, CPI rose 1.4 percent as compared to the
same period last year.
In a note Friday, ANZ Research said it believed the moderation in inflation
is transitory and will partly reverse when the Sales and Services Tax (SST)
is reinstated in September.
“We see CPI inflation falling towards 0.2 percent year on year in August,
but that could be the bottom for inflation. Nonetheless, for the full year,
inflation is likely to be higher than our current forecast of 0.7 percent,”
it added.
In June, Malaysia’s CPI dropped to a three-month low 0.8 percent as the
country’s new government has zero rated the goods and services tax (GST)
since June. The government will reintroduce SST in September.
Given low inflation, the softer-than-expected growth outcome in Q2 and
policy uncertainties, ANZ Research expects Malaysian Central Bank to remain
on hold for the rest of the year.
BSS/XINHUA/HR/1308