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Malaysia Inflation February 2020

Malaysia: Inflation softens in February

Consumer prices were unchanged from the prior month in February, contrasting the 0.1% increase in January. Lower prices for transport were countered by higher prices for housing and utilities; food and non-alcoholic beverages; and health.

Inflation weakened to 1.3% in February from 1.6% in January. Meanwhile, annual average inflation edged up to 1.0% in February from 0.9%. Going forward, price pressures will likely remain subdued as Malaysia’s Covid-19 lockdown will dampen demand for goods and services and amid low oil prices. That said, the Bank’s monetary easing and a weaker ringgit represent upside risks to the inflation outlook.

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