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Malaysia Inflation December 2017

Malaysia: Inflation edges up in December

In December, consumer prices rose 0.1% compared to the previous month, significantly below the 0.7% month-on-month rise registered in November. The soft reading was the result of a combination of higher prices for food and non-alcoholic beverages, which were offset by lower prices for transportation, clothing and footwear, and alcoholic beverages and tobacco.

Inflation inched up to 3.5% in December from 3.4% in November, in line with market expectations. December’s uptick in inflation was mainly driven by slight increases in prices for transport—reflecting a strong base effect stemming from fuel cuts last year—and food and non-alcoholic beverages. Meanwhile, annual average inflation edged up from 3.7% in November to 3.8% in December, the highest print in more than eight years.

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