Malaysia: Inflation falls to lowest level in six months
June 20, 2014
Consumer prices increased 0.1% over the previous month in May, which was up from the flat reading registered in April. The result reflected that higher prices for healthcare and for restaurants and hotels offset lower prices for food and non-alcoholic beverages as well as for communication.
Annual inflation decreased from 3.4% in April to 3.2% in May, which was just below market expectations of a 3.3% increase. May’s inflation marked the lowest level since November 2013. Annual average inflation increased from April’s 2.7% to 2.8%, which marked an over-two-year high. A series of subsidy cuts the government introduced to ease concerns over the fiscal deficit is partially contributing to inflationary pressures.
Author: Carl Kelly, Economist