Malaysia Inflation


Inflation moderates to a 20-month low in May

In May, consumer prices added 0.2% over April, which was above the flat readings recorded in the previous three consecutive months. The May result mainly reflected higher prices for food and non-alcoholic beverages as well as for housing, water, electricity, gas and other fuels. Annual inflation continued to slow and fell from 1.9% in April to 1.7% in May, which was in line with market expectations. The May print represented the lowest rate since September 2010. Accordingly, annual average inflation inched down from April's 2.9% to 2.8%. The Central Bank sees inflation averaging between 2.5% and 3.0% this year.

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Malaysia Inflation Chart

Malaysia Inflation May 2012

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

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