KUALA LUMPUR (June 22): RHB Research Institute Sdn Bhd expects Malaysia’s headline inflation to pick up to 3.5% in 2017, from 2.1% in 2016.
In an economic update today, the research house said the headline inflation rate slowed to 3.9% year-on-year (y-o-y) in May 2017, from 4.4% in April and 5.1% in March.
It said this was mainly on account of a slowdown in the cost of transportation amid lower fuel prices and a fading low base effect during the month.
“Looking ahead, we envisage the headline inflation rate to normalise to 2.8% y-o-y in 2H17 (+4.3% estimated for 1H17) amid lower fuel prices and a waning low base effect.
“For the full year, we expect headline inflation to pick up to 3.5% in 2017, from +2.1% in 2016. This is on account of: