Thursday, March 1, 2018

FW: RHB | Malaysia | Inflation Normalises In Early 2018

 

 

Economic Research

28 February 2018

Malaysia

 

Economic Update

 

 

 

Inflation Normalises In Early 2018

 

The headline inflation rate normalised to 2.7% YoY in January (+3.5% in Dec 2017). This was mainly due to a slower rise in F&B and transportation costs during the month. Going forward, we expect headline inflation to moderate to 3% in 2018, from +3.7% last year, due to a smaller increase in oil prices compared to 2017. That said, the resiliency of domestic demand should continue to support elevated prices ahead. Bank Negara Malaysia (BNM) is likely to hike rates one more time in 2018. After hiking the overnight policy rate (OPR) by 25bps in January, the central bank stated that it would continue to assess the balance of risks surrounding the outlook for domestic growth and inflation. This suggests that further hikes would likely be data-dependent.

Economists:

Vincent Loo Yeong Hong  | +603 9280 2172

Aris Nazman Maslan  | +603 9280 2184

 

 

To access our recent reports please click on the links below:

 

21 Feb : Exports Growth To Remain Healthy After Surging In 2017

15 Feb : Current Account Surplus To Narrow In 2018

14 Feb : 2017 GDP Growth Strongest In Three Years

12 Feb : 4Q17 Economic Activity Remains Healthy Despite Slowdown

08 Feb: Exports Ease in December but Cap a Robust Year

 

Economics Team

Arup Raha

Group Chief Economist

arup.raha@rhbgroup.com

+65 6232 3896

Peck Boon Soon

Chief ASEAN Economist

bspeck@rhbgroup.com

+603 9280 2163

Vincent Loo Yeong Hong

Malaysia, Vietnam,

vincent.loo@rhgroup.com

+603 9280 2172

Rizki Fajar

Indonesia, Philippines

rizki.fajar@rhbgroup.com

+6221 2970 7065

Aris Nazman Maslan

Malaysia, Vietnam

mohd.aris.nazman@rhbgroup.com

+603 9280 2184

 

 

 

 

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