ZCZC
BCN-34
MALAYSIA-ECONOMY-INFLATION-FOOD-PRICE
Malaysia’s May inflation up 1.8 pct on higher transport and food prices
KUALA LUMPUR, June 21, 2018 (BSS/Xinhua) – Malaysia’s inflation in May
rose 1.8 percent year-on-year, due to higher transport, food and non-
alcoholic beverages costs, official data showed.
Malaysian statistics department data showed Wednesday, the transports
index for the month increased by 3.8 percent, while food and non-alcoholic
beverages index went up 2.2 percent.
Meanwhile, indexes for housing, water, electricity, gas and other fuels
rose 2.1 percent; restaurants and hotels grew 2.1 percent; health expanded
1.9 percent; furnishings, household equipment and routine household
maintenance edged up 1.5 percent.
On a monthly basis, the consumer price index (CPI) increased 0.2 percent
as compared to April.
For the period January to May, it registered an increase of 1.7 percent as
compared to the same period last year.
Core inflation rose 1.5 percent in May as compared to the same month of
the previous year.
“The removal of goods and services tax (GST) will push CPI inflation lower
in coming months. We have revised our CPI inflation forecast for 2018 to 0.7
percent from 2.7 percent previously,” said ANZ in a note Wednesday.
Given low inflation and near-term uncertainty, the research house expects
Malaysian Central Bank to maintain the overnight policy rate at 3.25 percent
for the rest of the year.
Amid higher base effects, MIDF foresees headline inflation rate to average
at 2.6 percent this year compared to 3.8 percent in 2017, supported by
inflation rate for the first quarter which registered at 1.8 percent compared
to 4.2 percent in the same period last year.
“We expect inflationary pressure mainly from fuel-related items to calm,
consistent with gradual rise in global commodity prices on top of pass-
through effect from a strengthening ringgit, re-subsidization of domestic
fuel price and withdrawal of GST,” it added.
BSS/XINHUA/HR/1222