Thanks to softening inflation in food and transport.
Malaysia’s headline inflation dipped to 3.7% in October from last month’s 4.3% as overall prices declined by 0.2% on a MoM basis led by weak inflation in food and transport, according to a report form Bank of America Merill Lynch (BofAML).
The food and non-alcoholic beverage index decreased by 0.5% MoM as prices fell for fresh foods whilst transport index was also lower due to slowdown in fuel and lubricant prices.
Core inflation, which excludes fresh food and administered prices, also marginally decreased to 2.3% YoY.
Despite the slight moderation in inflation levels, BofAML believes that stronger price pressures will emerge in 2018 as core inflation is projected to rise to 2.7% due to robust domestic demand and strong wage growth.
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