Malaysia: Inflation falls to lowest level since March in August
Consumer prices were unchanged over the previous month in August, following the 0.57% drop seen in July. The result largely reflected rising prices for food and non-alcoholic beverages, which were offset by sliding prices for transportation.
Inflation came in at 2.0% in August, which was down from July’s 2.2%. August’s reading marked the weakest inflation rate since March. Meanwhile annual average inflation rose to 1.0% in August (July: 0.7%).
Commenting on the outlook for inflation, Julia Goh and Loke Siew Ting, economists at United Overseas Bank, said:
“We expect inflation to remain stable and hover around its long-term 20-year average level of 2.0% for the rest of 2021 and into 2022. Despite an elevation in input costs, the extension of government relief measures, particularly electricity bill discounts, and the impact of prolonged lockdown on non-essential demand would continue to keep a lid on price pressures. Key to watch is whether the government maintains utility discounts and price ceiling on domestic fuels next year.”