Malaysia Inflation


Inflation continues to moderate at the outset of 2012

In January, consumer prices rose 0.3% over the previous month, which overshot the 0.1% increase observed in December and, in fact, represented the strongest rise since June. The monthly price increase was mainly driven by higher prices for education as well as for food and non-alcoholic beverages, which were partially offset by lower prices for clothing and footwear. That said, consumer prices in January were distorted by the Chinese Lunar New Year holidays. Annual inflation continued to moderate and fell to 2.7% in January, which was below the 3.0% seen in December but in line with market expectations. However, annual average inflation remained unchanged at December's 3.2%.

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