Malaysia: Inflation picks up in October following the reinstatement of the sales and services tax on 1 September
November 23, 2018
Consumer prices rose 0.17% in October over the prior month, down from September’s 0.42% increase. The print reflected higher prices for food and non-alcoholic beverages; alcoholic beverages and tobacco; and transport; although these were partly offset by a less steep increase in the price for furnishing, and restaurants and hotels.
Inflation picked up to 0.6% in October, doubling September’s result. This likely reflects the effects of the reinstatement of the sales and services tax (SST) on 1 September, three months after the goods and services tax (GST) was zero-rated on 1 June. Annual average inflation edged down to 1.5% from 1.8% in September. Lastly, core inflation—which excludes certain types of fresh food and administered prices of goods and services—inched up to 0.4% in September from 0.3% in the previous month.
Malaysia Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 2.2% in 2019 and 2.4% in 2020.
Author: Jan Lammersen, Economist