Inflation Rises Further, Keeping An Eight-Year High

Economic Research	20 April 2017
Malaysia
Economic Update
Inflation Rises Further, Keeping An Eight-Year High 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