Malaysia Inflation


Inflation drops to lowest level in more than two years

In June, consumer prices added 0.1% over May, which was below the 0.2% rise recorded in the previous month. The June result mainly reflected higher prices in most of the sub-categories, particularly in the food and non-alcoholic category, which more than offset lower prices for clothing and footwear as well as for transport. Annual inflation continued to moderate and inched down to 1.6% in June, which was below market expectations that had inflation remaining at May's 1.7%. In fact, the June print represents the lowest rate since May 2010. Accordingly, annual average inflation dropped from 2.8% in May to 2.6% in June. The Central Bank sees inflation averaging between 2.5% and 3.0% this year.

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Malaysia Inflation Chart

Malaysia Inflation June 2012

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

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