Malaysia: Inflation eases in August
September 21, 2011
In August, consumer prices increased 0.2% over the previous month, which mirrored the 0.2% rise tallied in the previous month. The monthly price increase was mainly driven by higher prices in the recreation services and culture category as well for housing and utilities, which were partially offset by lower clothing and footwear prices. Annual inflation inched down from 3.4% in July to 3.3% in August, which matched market expectations. Owing to the weaker print, annual average inflation in August remained unchanged at July's 3.4%. At its 8 September monetary policy meeting, the Central Bank decided to keep rates unchanged at 3.00% for a second consecutive meeting due to ?rising uncertainties on the global and domestic economic growth prospects and their potential?, which may have ?a moderating impact on inflation?. The government estimates inflation to average between 2% and 3% this year.