Malaysia Inflation


Inflation touches 16-month low in March

In March, consumer prices remained flat over the previous month, which mirrored the February's outturn. The March result mainly reflected lower prices for clothing and footwear, which were offset by higher costs in the restaurants and hotels category. Annual inflation continued to slow and inched down to 2.1% in March, which was below February's 2.2% but came in line with market expectations. In fact, the March print represented the lowest rate since November 2010. Accordingly, annual average inflation inched down from February's 3.1% to 3.0%. The Central Bank sees inflation moderating to between 2.5% and 3.0% this year.

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Malaysia Inflation Chart

Malaysia Inflation March 2012

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

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