Malaysia’s inflation rate moderated to the lowest level in a year, giving reprieve to central-bank policymakers who unexpectedly raised policy rates in last month’s meeting.
(Bloomberg) — Malaysia’s inflation rate moderated to the lowest level in a year, giving reprieve to central-bank policymakers who unexpectedly raised policy rates in last month’s meeting.
Consumer price index rose 2.8% from a year earlier in May, lower than the median estimate of 3% in a Bloomberg survey, official data showed Friday. The core measure, which excludes fresh food and government-administered price goods decelerated to 3.5%, with food prices rising 5.9%.
Malaysia’s consumer prices have now moderated for the ninth straight months since reaching a peak of 4.7% in August, reinforcing hopes that the worst bout of price pressures has finally passed.
Bank Negara Malaysia hiked its overnight policy rate to 3% in May, marking the return of borrowing costs to pre-pandemic levels. The central bank remained wary of any future financial imbalances amid lingering price pressures, in light of the continued strength of the Malaysian economy.
The central bank will release a policy decision on July 6, following the US Fed which kept its policy rates unchanged earlier this month.
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