Malaysia: Inflation holds steady at highest level in nearly three years
April 16, 2014
Consumer prices rose 0.1% over the previous month in March, which was down from the 0.3% rise tallied in February. The increase mainly reflected higher prices for restaurants and hotels, transport, and healthcare.
Annual inflation stabilized at February's 3.5% in March, which was in line with market expectations. The reading marks the highest level since June 2011. Annual average inflation increased from February's 2.4% to 2.6%. A series of subsidy cuts the government introduced to ease concerns over the fiscal deficit is partially contributing to inflationary pressures.
FocusEconomics Consensus Forecast panelists expect inflation to average 3.3% in 2014, which is up 0.1 percentage points from last month's projection. For 2015, the panel sees inflation rising to 3.4%.
Author: Carl Kelly, Economist