KUALA LUMPUR, Aug 24 — Malaysia’s consumer price index rose 1.1 per cent in July from a year earlier, the fifth consecutive month in which the inflation rate has slowed, government data showed today.
The increase was below the 1.2 per cent median forecast in a Reuters poll, and down from June’s 1.6 per cent.
Figures from the Statistics Department showed higher prices for alcoholic and non-alcoholic beverages, tobacco, food and housing. Prices for transport, communication, clothing and footwear were lower than a year earlier.
Annual inflation reached a seven-year peak of 4.2 per cent in February, but has since moderated as fuel prices have remained low and as the effects of a goods and services tax imposed in April 2015 fade.
Malaysia’s central bank last month cut its inflation projection for the year to 2-3 per cent from 2.5-3.5 per cent.
Bank Negara Malaysia (BNM) also cut its key policy rate by 25 basis points to 3.0 per cent, the first cut in seven years. — Reuters
