Thailand
Malaysia: November’s inflation rate up at slowest rate in nearly four years
PETALING JAYA: The inflation rate rose at a slower pace of 0.2% in November from a year ago compared with a Bloomberg forecast of 0.4% as fuel-related inflation declined due to weaker crude oil prices.
The Statistics Department said yesterday the increase in the consumer price index (CPI) was due to housing, water, electricity, gas and other fuels (+2%), education (+1.4%), restaurants and hotels (+1.2%).
Food and non-alcoholic beverages rose 1.1% and alcoholic beverages and tobacco 1%.
Its chief statistician Datuk Seri Mohd Uzir Mahidin said that on a monthly basis, the CPI increased by 0.2% compared to October 2018.
“CPI for the period from January-November 2018 registered an increase of 1% compared to the same period last year,” he said in a statement.
Commenting on the CPI, MIDF Research said headline inflation was back to near four-year low.
“The figure went down slightly more than our forecast of 0.3% year-on-year (y-o-y) while the market expected it to maintain at previous month’s rate of 0.6% y-o-y.
“The moderation mainly attributed to transport prices which dropped by 2.3% y-o-y (+0.8% y-o-y in October 2018).
“Despite the slowdown in headline prices, the core inflation rate increased further to 0.5% y-o-y (0.4% y-o-y in October 2018).
The average price of Brent crude oil went down to US$65.5 per barrel, a tepid increase of 3.8% y-o-y in November (US$80.5 per barrel in October).
MIDF Research projected tepid inflation for 2018 at 1.3%.
Amid higher base effects, it foresees headline inflation rate to average at 1.3% this year compared to 3.8% in 2017.
It said this was supported by lower inflation rate for the first 11 months which came in at 1% compared to 3.8% in the same period last year.
Source: https://www.thestar.com.my/business/business-news/2018/12/20/novembers-inflation-rate-up-at-slowest-rate-in-nearly-four-years/#biJhlgkFh6GGDOcP.99