Malaysia’s Inflation Up 2.5% In June Due To GST And Weak Ringgit
Malaysia’s consumer prices rose in June following an increase in petrol prices. The implementation of the goods and services tax (GST) and a weaker Ringgit also contributed to inflationary pressure.
Data from the Statistics Department showed that the consumer price index (CPI), which measures headline inflation, showed a 2.5% increase in June compared with the same period in 2014, with food and non-alcoholic beverages contributing to the bulk of the rise in index.
The 2.5% rise was slightly higher than the forecasted increase of 2.4%. In the first-half of 2015, inflation averaged 1.4%, primarily due to lower petrol prices.
Economists say the rising inflation was due to the hike in petrol price from June 1, when RON95 and RON97 petrol saw a 10 sen increase to RM2.05 and RM2.35 respectively.
Most do not expect Bank Negara to raise benchmark interest rates in September when the monetary policy committee meets.