Malaysia Jan inflation rate rises to 3.5% year on year, slightly below forecast

[KUALA LUMPUR] Malaysia's consumer price index in January rose 3.5 per cent from a year earlier, the largest annual increase since March 2014.

Data from the Statistics Department on Wednesday attributed the January rise to higher prices for alcohol and tobacco products as well as consumer goods.

The inflation rate was slightly below the median forecast of 3.7 per cent in a Reuters poll, and up from 2.7 per cent in December.

Fuel prices fell in January but a low base from a year earlier and higher food and cigarette prices contributed to a higher inflation rate, economists said.

In November, the government raised excise taxes on tobacco products by 40 per cent.

REUTERS