Thursday, April 20, 2017

Inflation Rises Further, Keeping An Eight-Year High

Economic Research
20 April 2017
Malaysia

Economic Update




The headline inflation rate picked up to its quickest pace in eight years, to 5.1% YoY in Mar 2017, from +4.5% in Feb 2017. This is mainly due to a surge in transportation costs amid higher fuel prices compared to a year ago. Looking ahead, we envisage the headline inflation rate to pick up to 3% in 2017, from +2.1% in 2016. This is on account of:
1.   Upward adjustment to fuel prices;
2.   Removal of subsidies on selected administered goods prices;
3.   Higher business costs;
4.   Weak MYR translating into higher import prices.

Economist:  Vincent Loo Yeong Hong  | +603 9280 2172
Economist:  Aris Nazman Maslan  | +603 9280 2184

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