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Malaysia May inflation seen picking up to 2.0%

[KUALA LUMPUR] Malaysia's annual inflation rate likely picked up to 2.0 per cent in May as prices continued to rise after the introduction of a consumption tax in April, a Reuters poll showed.

The government has warned that inflation may temporary spike in the months after the implementation of the 6 per cent Goods and Services Tax (GST).

The economy grew 5.6 per cent in the first quarter, as domestic demand helped to counter the effects of weak global prices and commodity exports.

Cosumer inflation in April was 1.8 per cent.

REUTERS