Malaysia: Consumer prices continue to decline in February, albeit at reduced rate
Consumer prices rose 0.2% month-on-month in February, contrasting the 0.5% decline in January. February’s reading was driven by higher prices for transport; education; and furnishing and household equipment.
In year-on-year terms, consumer prices fell 0.4% in February, up slightly from January’s 0.7% drop, while annual average inflation eased from 0.7% in January to 0.5% in February. Core inflation—which excludes certain types of fresh food and administered prices of goods and services—registered 0.3%, up from January’s 0.2%.
All in all, February’s figures suggest consumer prices are bottoming out, and a recovery is forecast in the remainder of the year amid higher oil prices and as the impact of last year’s tax holiday fades.