November inflation seen easing to 0.5%
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Malaysia’s consumer price index (CPI) is expected to rise 0.5% in November from a year earlier, a Reuters poll showed, marginally slower than the previous month amid lower transport prices. Inflation has been mild since the government removed an unpopular consumption tax in June and reinstated a narrower sales and services tax (SST) three months later.
The annual inflation rate was 0.6% in October. It has been rising after hitting a three-and-a-half year low of 0.2% in August.
Economists expect any pickup in inflation due to the reintroduction of SST to be muted, softened further by the government’s decision to fix pump prices for premium RON95 petrol for the rest of the year.
Last month, Malaysia’s central bank said inflation had been largely benign in the third quarter, but was expected to edge upwards the rest of the year and into 2019.
Questions & Answers
Q.What was the main reason cited for the expected easing of inflation in November?
What was the main reason cited for the expected easing of inflation in November?
The expected easing of inflation in November is primarily attributed to marginally slower growth compared to the previous month, influenced by lower transport prices.
Q.When was the last time Malaysia's inflation rate was at its lowest point, and what was that rate?
When was the last time Malaysia's inflation rate was at its lowest point, and what was that rate?
Malaysia's inflation rate hit a three-and-a-half year low of 0.2% in August. Since then, the rate has been consistently rising.
Q.Which government policy has been implemented to help soften any increase in inflation?
Which government policy has been implemented to help soften any increase in inflation?
The government's decision to fix pump prices for premium RON95 petrol for the remainder of the year is expected to help soften any pickup in inflation.
Q.How has the central bank described inflation during the third quarter of the year?
How has the central bank described inflation during the third quarter of the year?
Malaysia's central bank stated that inflation had been largely benign in the third quarter. However, it was anticipated to edge upwards later in the year and into 2019.
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