Malaysia's July inflation rate seen marginally up

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KUALA LUMPUR (Aug 23): Malaysia's annual inflation rate is expected to have risen to 0.9% in July, marginally faster than the previous month, a Reuters poll showed.

Transport costs were expected to rise slightly in July on higher fuel prices, but overall inflation likely remained subdued due to the government's removal of a 6% goods and services tax in June, said economists in the survey that was conducted on Tuesday.

Annual inflation hit a three-year low of 0.8% in June following the abolishment of the tax.

Malaysia's central bank left its key interest rate unchanged in its July 11 review, citing slowing inflation and steady economic growth.

Headline inflation slowed to 1.3% in the second quarter and was expected to moderate further throughout the year.