Malaysia Inflation


Malaysia: Inflation continues to rise

May 18, 2011

In April, consumer prices increased 0.2% over the previous month, which was above the 0.1% rise tallied in March. The increase was mainly driven by rising prices for food and non-alcoholic beverages as well as higher transport costs. Higher readings were also seen in recreation services and culture. Annual inflation climbed from 3.0% in March to 3.2% in April, which overshot market expectations of a 3.1% rise. In addition, annual average inflation maintained the upward trend in place since May 2010, inching up from 2.1% in March to 2.2% in April. Most analysts expect the Central Bank to further tighten monetary policy, after maintaining interest rates on hold since July 2010.


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