Malaysia: Inflation remains minimal in September despite tax change
October 26, 2018
Consumer prices increased 0.42% month-on-month in September, up from August’s 0.17% increase. September’s figure reflected higher prices for food and non-alcoholic beverages; recreation and culture; and communication.
Inflation ticked up only slightly to 0.3% in September from 0.2% in August, despite the introduction of the Sales and Services Tax (SST) on 1 September. Annual average inflation came in at 1.8%, down from August’s 2.1%, while core inflation—which excludes certain types of fresh food and administered prices of goods and services—was 0.3% in September. Muted price pressures will likely lead the central bank to maintain its current stance over the quarters ahead.
Malaysia Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 2.1% in 2019 and 2.3% in 2020.
Author: Jan Lammersen, Economist