In Kuala Lumpur, Malaysia, inflation remained stable at the beginning of the year, with a slowdown in food price growth indicating a trend of price stabilization.
Key Insights
- The consumer price index increased by 1.5% in January compared to the previous year, maintaining the same growth rate as the previous month.
- Economists predicted this outcome, emphasizing the expected stabilization in prices.
- Both headline and core inflation showed moderation last year, aligning with Bank Negara's forecasts for continued modest inflation in 2024.
- Government subsidies can act as a buffer against external factors that may impact food and fuel prices in Malaysia.
Inflation Trends
- Food and non-alcoholic beverages, comprising 29.5% of the index, saw a 2.0% year-on-year increase in January, down from 2.3% in December.
- Core inflation, excluding volatile food prices and government-controlled items, rose by 1.8% year-on-year in January, slightly lower than December's 1.9% increase.
- Monthly consumer prices rose by 0.2% in January, matching the previous month's increase.
Sector-wise Inflation Data for January
| Sector | Index Weighting | Year-on-Year Change | |-------------------------------------------------|-----------------|---------------------| | Food & Non-Alcoholic Drinks | 29.8% | +2.0% | | Housing, Utilities & Fuels | 23.2% | +2.0% | | Transport | 11.3% | +0.7% | | Information & Communication | 6.6% | -2.4% | | Personal Care, Social Protection & Miscellaneous | 5.8% | +2.5% | | Furnishings, Household Equipment & Maintenance | 4.3% | +1.0% |
Amidst ongoing stabilization in prices, Malaysia's inflation landscape offers insights into the country's economic resilience.
Stay updated for more insights.
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