skyline at night in Malaysia

Malaysia Inflation December 2022

Malaysia: Inflation plunges to lowest level since June in December

Inflation came in at 3.8% in December, which was down from November’s 4.0%. December’s result marked the weakest inflation rate since June. The slowdown was primarily due to a slower increase in prices for food and non-alcoholic beverages. Moreover, prices for recreation services and culture grew at a more subdued pace.

However, annual average inflation edged up to 3.4% in December (November: 3.3%).

Lastly, consumer prices increased a seasonally adjusted 0.16% from the previous month in December, coming in below the 0.31% increase logged in November. December’s result marked the weakest reading since September.

Analysts at the EIU commented on the outlook:

“We forecast that consumer price inflation will moderate from an estimated 3.4% in 2022 to 2.6% in 2023, although we expect food prices to remain elevated throughout that year. We also expect services prices to moderate amid greater competition, as more sectors are opened to tourism. Global energy prices will remain relatively high, but this will have only a mild impact on the consumer price index as the government continues to subsidise fuel and electricity tariffs. The removal of these subsidies (which is not part of our central forecast) would result in a much higher headline rate of inflation.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest