Malaysia's inflation forecast to be 3-3.5pc

Source:
The Malaysian Insider

Malaysia’s inflation rate rose to a 25-month high of 3.3 percent year-on-year in May 2011, in line with investment research firm Amresearch's forecast as well as Bloomberg’s median forecast.

The rise was mainly due to supply shocks which led to the sub-index for Food & Non-Alcoholic Beverages recording an increase of 4.5 percent. Meanwhile, transport sub-index rose to 6.0 percent – the highest since November 2008 – on the back of cuts in subsidy.

Amresearch forecasts the full-year average will still be within its range forecast of between 3 percent and 3.5 percent.

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