Malaysia Inflation


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%.

FocusEconomics Consensus Forecast panelists expect inflation to average 3.9% in 2015, which is down 0.1 percentage points from last month’s projection. For 2016, the panel sees inflation falling to 3.1%.

Author:, Economist

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Malaysia Inflation Chart

Malaysia Inflation January 2015

Note: Annual and monthly variation of consumer price index in %.
Source: Department of Statistics Malaysia (DSM).

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