Malaysia November inflation seen easing to 2.7 pct y/y

-A +A

KUALA LUMPUR (Dec 16): Malaysia's annual inflation rate may have eased slightly in November, a Reuters poll showed, as falling global commodity prices kept consumer prices in check.

The median forecast in the poll was 2.7 percent, against October's 2.8 percent.

Due to falling oil prices, the government decided to float consumer fuel prices for the time being, with a month-to-month review beginning in December.

But As Brent prices continue to slide and trade below $65, economists warn that the government would not be able to meet its fiscal deficit target of 3 percent next year.

"Malaysia faces the risk of a 'double miss' on both growth and fiscal deficit targets in 2015," said Chua Hak Bin, economist at Bank of America Merrill Lynch in a research note.
 
"Higher GST from April may compound the negative shock," Chua said.