Inflation set to moderate
PETALING JAYA: Malaysia's inflation rate is expected to moderate in the coming months due to an easing of international commodity prices and a slowdown in growth on the back of the weak global economic conditions, according to HSBC Global Research.
The consumer price index had eased to 3.3% year-on-year in November from 3.4% the prior month, primarily led by a decline in food price inflation.
However, HSBC Global Research noted that inflation remained a bit too high for comfort.
The research unit said the steady core inflation reflected the resilience of domestic demand, which is keeping underlying inflation pressures in place.
“While food inflation has eased, there is still a risk that it could creep up in response to the supply impact as a result of the floods in Thailand and the domestic farmland labour shortages related to the crack-down on illegal foreign workers,” it said
Inflation would need to decline more notably before the central bank would embark on a “mini” easing cycle during the first half of 2012, said HSBC Global Research.
Source : The Star
Date : 23 December 2011
Afternoon Highlight (23/12/11/226/688)
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