Malaysia Inflation


Malaysia: Inflation rises to highest level since June 2011

March 21, 2014

Consumer prices rose 0.27% over the previous month in February, which was down from the 0.55% rise tallied in January. The increase mainly reflected higher prices for housing and utilities, as well as for restaurants and hotels. Inflation inched up from 3.4% in January to 3.5% in February, which was slightly above market expectations of a 3.4% rise. The reading marks the highest level since June 2011. Annual average inflation increased from 2.3% in January to 2.4%. A series of subsidy cuts introduced by the government to ease concerns over the fiscal deficit is partially contributing to inflationary pressures. FocusEconomics Consensus Forecast panelists expect inflation to average 3.2% in 2014, which is up 0.1 percentage points from last month's projection. For 2015, the panel sees inflation rising to 3.4%.

Author:, Economist

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Malaysia Inflation Chart

Malaysia Inflation February 2014

Note: Annual variation of consumer price index (CPI) in %.
Source: Department of Statistics Malaysia and FocusEconomics calculations.

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