Malaysia: Inflation rises to two-and-a-half year high in January
February 19, 2014
Consumer prices rose 0.55% over the previous month in January, which was up from the 0.28% increase tallied in December. The increase mainly reflected higher prices for food and non-alcoholic beverages, housing and utilities, as well as for education. A series of subsidy cuts introduced by the government to ease concerns over the fiscal deficit partially drove the increase in prices.
Inflation picked up from 3.2% in December to 3.4% in January, which was slightly above market expectations of a 3.3% rise. The reading marks the highest level since July 2011. Annual average inflation increased from 2.1% in December to 2.3% in January.
FocusEconomics Consensus Forecast panelists expect inflation to average 3.1% in 2014, which is unchanged from last month's projection. For 2015, the panel sees inflation rising to 3.4%.
Author: Carl Kelly, Economist