Malaysia Inflation


Malaysia: Inflation picks back up in June

July 16, 2014

Consumer prices increased 0.2% over the previous month in June, which was up slightly from the 0.1% rise registered in May. June’s result was driven by higher prices for food and non-alcoholic beverages as well as for healthcare. In contrast, prices for transport and for clothing and footwear decreased compared to the previous month.

Annual inflation ticked up from 3.2% in May to 3.3% in June, which was in line with market expectations. Annual average inflation increased from May’s 2.8% to 3.0%, which marked the highest level in more than two years. 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 unchanged from last month’s projection. For 2015, the panel sees inflation rising to 3.6%.

Author:, Economist

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Malaysia Inflation Chart

Malaysia Inflation June 2014

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

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