Malaysia: Inflation remains benign – ANZ

According to analysts at ANZ, at 0.2% y/y in April Malaysia’s headline CPI inflation remained unchanged from the previous month.

Key Quotes

“Although food prices declined 0.2% in the month, this was offset by a rise in transportation costs.”

“In our view, the price ceiling on domestic fuel products has likely shielded consumers from the full extent of the rise in oil prices over the last two months.”

“The trend in core inflation remains benign and with slower growth momentum, we expect this trend to continue.”

“Risks to the inflation outlook are broadly balanced – higher-than-expected oil prices pose an upside risk, while the recent changes to controlled food items could limit volatility in food prices.”