Malaysia Inflation


Malaysia: Inflation rises slightly in May

June 24, 2011

In May, consumer prices increased 0.3% over the previous month, which was above the 0.2% rise tallied in March. Higher readings were seen across the board, although the monthly increase was mainly driven by higher prices for transport and housing. Annual inflation inched up from 3.2% in April to 3.3% in May, which matched market expectations. As a result, annual average inflation maintained the upward trend in place since May 2010, stepping up from 2.2% in April to 2.4% in May. Against this backdrop, most analysts expect the Central Bank will raise interest rates by 25 basis points at its next monetary policy meeting scheduled on 7 July.


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