In February, consumer prices increased 0.5% over the previous month, which was a notch below the 0.6% rise tallied in January. The increase was led by rising food prices as well as restaurants and hotels, while transport prices remain more subdued. Owing to the pronounced price increase, annual inflation jumped from 2.4% in January to 2.9%, which exceeded market expectations of 2.7%. In addition, annual average inflation maintained the upward trend in place since May 2010, rising from 1.8% in January to 1.9% in February. Most analysts expect the upward trend to continue in the coming months in the wake of rising food and energy prices. Despite rising inflation pressures Central Bank Governor Zeti Akhtar Aziz asked the government to continue withdrawing its subsidies for fuel and food. The ensuing price increases for food and gasoline, would probably require the Central Bank to again increase interest rates, which have been on hold since July last year.
Increasing inflation raises likelihood of further policy tightening
March 24, 2011
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Malaysia Economic News
October 12, 2016
Industrial production increased 4.9% in August from the same month last year.
October 7, 2016
Exports in USD terms rose 3.3% annually in August, which was a sharp improvement over July’s 8.9% contraction (previously reported: -8.7% year-on-year).
September 23, 2016
In August, consumer prices rose 0.43% over the previous month, which was slightly up from the 0.26% increase registered in July, according to the Department of Statistics Malaysia.
September 16, 2016
The ringgit has had a tumultuous week as a combination of factors, both domestic and external, have impacted the currency.
September 10, 2016
Industrial production increased 4.1% in July over the same month last year.