Malaysia Inflation


Inflation remains stable in August

In August, consumer prices rose 0.2% over the previous month, which was above the flat reading witnessed in July. The result mainly reflected higher prices for housing, water, electricity, gas and other fuels; transport as well as for food and non-alcoholic beverages, which more than compensated for lower prices for clothing and footwear. Despite the monthly rise, annual inflation remained stable at July's 1.4%, which represents the lowest level seen since March 2010 and came in line with market expectations. As a result, annual average inflation stepped down from 2.5% in July to 2.3% in August. The Central Bank sees inflation averaging between 2.5% and 3.0% this year.

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Malaysia Inflation Chart

Malaysia Inflation August 2012

Note: Annual variation of consumer price index (CPI) in %.
Source: Department of Statistics Malaysia and FocusEconomics calculations.

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