Malaysia: No surprises in inflation – ANZ

ANZ analysts point out that at 0.2% y/y Malaysia’s headline CPI inflation remained unchanged in May from the previous month.

Key Quotes

“The festive season likely explains the increase in food prices. Higher prices in the food and ‘housing and utilities’ components accounted for most of the sequential increase in May.”

“Meanwhile, the trend in core inflation remains benign, and with slower growth momentum we expect this trend to continue.”

“Recent comments from the Prime Minister suggest that the implementation of targeted fuel subsidies could be delayed beyond 1 July. This would limit any upside risks from higher-than-expected fuel prices.”