Malaysia Inflation


Inflation continues to slow in February

In February, consumer prices remained flat over the previous month, which contrasted the 0.3% rise observed in January and represented, in fact, the lowest reading since April 2010. Lower prices for food and non-alcoholic beverages were completely offset by higher prices in all other main categories. That said, variations in consumer prices in February continued to be distorted by the Chinese Lunar New Year holidays. Annual inflation continued to slow and fell to 2.2% in February (January: 2.7% year-on-year), which was slightly below the 2.3% anticipated by market analysts and marked, in fact, the lowest rate since December 2010. Accordingly, annual average inflation inched down from January's 3.2% to 3.1%.

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