Malaysia Inflation


Inflation moderates in July

In July, consumer prices increased 0.2% over the previous month, which was a notch below the 0.3% rise tallied in the previous month. The monthly price increase was mainly driven by higher prices in the restaurants and hotels category as well for food and non-alcoholic beverages, which were partially offset by lower transport prices. Annual inflation inched down from 3.5% in June to 3.4% in July, which was below market expectations of a 3.6% increase. Despite the weaker print, annual average inflation maintained the positive trend in place since June 2010, stepping up from 2.5% in June to 2.7% in July.

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