RHB | Malaysia | Inflation Picked Up To 3.3% Y-o-Y In August, BNM Will Unlikely Rush To Hike Rates, 18 Sept 2014

Economic Research	18 September  2014
Malaysia
Economic Highlights
Inflation Picked Up To 3.3% Y-o-Y In August, BNM Will Unlikely Rush To Hike Rates The headline inflation rate inched up to 3.3% y-o-y in August, from +3.2% in the previous month and at the same level as in June. Price pressure remains elevated during the month as the effect of the upward adjustment in administrative pricing rolled out by the Government since September 2013 still linger. This was reflected in a faster increase in the prices of food & non-alcoholic beverages and the core inflation rate in August. While price pressure remained elevated, the Central Bank will likely be cautious on tightening its monetary policy further, following a sharp slowdown in July’s exports and industrial production numbers. As a result, we expect the OPR to be kept at 3.25% for the rest of the year. Economist:  Peck Boon Soon  | +603 9280 2163 Economist:  Shafizal Shafaai  | +603 9280 2179