Edited By: Sheera Abg Mansor
KUCHING: Malaysia’s headline inflation is expected to average lower at 0.6 percent year on year (y-o-y) this year with the weakening of fuel-related items.
Based on the statement from the Department of Statistics Malaysia, the consumer price index (CPI) rose by 0.2 percent in April 2019 to 121.1 as compared to 120.9 in the same month of the preceding year.
The press release on the CPI for April 2019 also revealed that the main groups that contributed to the increases were housing, water, electricity, gas and other fuels (up 2.0 per cent), alcoholic beverages and tobacco (up 1.2 per cent), education (up 1.2 per cent), food and non-alcoholic beverages (up 1.1 per cent) and restaurants and hotels (up 0.8 per cent).
As per the CPI table provided which showed percentage change of headline CPI, seasonally adjusted index and core index by main groups, transport prices were shown to have declined 2.6 percent y-o-y in April 2019.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) as quoted in Borneo Post said as core inflation stood at the same pace as in March 2019, the headline inflation rate is foreseen to average lower at 0.6 percent y-o-y this year, compared to one percent y-o-y in 2018.
It added transport inflation was anticipated to recover significantly in the second half of 2019 (2H19) due to rising global crude oil prices, more targeted domestic petrol subsidy and removal of the RON95 price cap.
However, MIDF Research noted that the developments in these areas are rather slow.
Source: Borneo Post