KUALA LUMPUR, May 15 — Bank Negara Malaysia (BNM) may look into reviewing its inflation target this year from 2-3 per cent set earlier if the oil price level exceeds US$70 (RM250) per barrel. ‎

Its Governor Tan Sri Dr Zeti Akhtar Aziz however said at current level, the oil price was not going to have a significant adverse impact on inflation and consumption spending.

“At the moment, the assumption (made by the Government) is at US$55 per barrel and we do expect that it would range between this figure and US$65 per barrel. So, we believe that it would not have a significant impact on consumption and inflation.

“Unless it (oil price) reaches beyond US$70 per barrel, then we will review and make an assessment,” she told a media briefing on Malaysia’s first-quarter gross domestic product (GDP) performance here today.

For the ‎first quarter, inflation was lower at 0.7 per cent as compared to 2.8 per cent in the previous quarter due to negative contribution of the transportation segment following the downtrend revision to domestic fuel prices.

In March, BNM said that ‎inflation is projected to remain relatively stable at an average of 2-3 per cent this year due mainly to lower energy and food prices, though the inflation trend would be affected by fluctuating oil prices. — Bernama