Malaysia: Inflation edges up in April
May 23, 2018
The consumer price index was flat in April, contrasting the 0.33% month-on-month drop in prices recorded in the prior month. The print reflected lower prices for food and non-alcoholic beverages that were offset by higher prices for health, clothing and footwear, and restaurants and hotels.
Inflation inched up from 1.3% in March to 1.4% in April but missed markets expectations of a stronger 1.6% reading. The result was driven by a pick-up in prices for transport, restaurants and hotels, health and recreation services and culture. Annual average inflation came in at 3.0% (March: 3.2%), while core inflation—which excludes fresh food and administered prices of goods and services—eased in April, falling to 1.5% from 1.7% in March.
Malaysia Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 2.7% in 2018, which is down 0.2 percentage points from last month’s projection. For 2019, the panel sees inflation averaging 2.8%.
Author: Jan Lammersen, Economist