Malaysia Dec inflation picks up to 2.7% year on year, meets forecast

[KUALA LUMPUR] Malaysia's consumer price index in December rose to 2.7 per cent from a year earlier due to a rise in prices for alcohol and tobacco products, government data showed on Wednesday.

The inflation rate was bang in line with the median forecast of 2.7 per cent in a Reuters poll, and up from 2.6 per cent in November.

Fuel prices fell in December but a 40 per cent tax hike on tobacco products imposed by the government the previous month have continued to drive inflation, economists said.

The country's inflation rate rose after the government introduced a 6 per cent goods and services tax in April but has been below 3 per cent since September.

REUTERS