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.
Author: Carl Kelly, Economist