Malaysia: Inflation falls to over-five-year low in January
February 18, 2015
Consumer prices declined 1.1% in January over the previous month, which was well below the 0.1% drop tallied in December. January’s result was mainly driven by a sharp fall in prices for transport, which resulted from the government’s decision to cut fuel and petrol prices by 15%. Prices for non-durable goods also dropped significantly compared to the previous month. Conversely, prices for food and non-alcoholic beverages were higher than in December.
Annual inflation dropped from 2.7% in December to 1.0% in January, which marked an over-five-year low. The result undershot market expectations of a 1.9% rise. As a result of January’s sharp slowdown, annual average inflation edged down from 3.1% in December to 2.9%.
Author: Cecilia Simkievich, Economist