Malaysia: Inflation rises in August
September 17, 2014
Consumer prices increased 0.2% over the previous month in August, which was up slightly from the 0.1% rise registered in July. August’s result was driven by higher prices for food and non-alcoholic beverages as well as for transport. In contrast, prices for alcoholic beverages and tobacco decreased compared to the previous month.
Annual inflation ticked up from 3.2% in July to 3.3% in August, which was just above market expectations of inflation holding steady at 3.2%. Annual average inflation increased from July’s 3.1% to 3.2%, 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.