Malaysia: Inflation accelerates in June
Consumer prices were stable month-on-month in June, down from May’s 0.2% uptick, as lower prices for transport were offset by higher prices for food and non-alcoholic beverages.
In year-on-year terms, consumer prices rose 1.5% in June, up from May’s 0.2% increase but short of market analysts’ expectations of 1.6%. Nevertheless, the reading was the highest since May 2018, supported by a much more favorable base effect due to the zero-rating of the goods and services tax in June last year. Looking ahead, price pressures should continue to mount due to a supportive base of comparison, the Bank’s recent monetary easing and robust domestic demand.