Malaysia's annual inflation seen quickening in May

[KUALA LUMPUR] Malaysia's annual inflation is expected to have accelerated to 1.8 per cent in May, gaining from the previous month, according to a Reuters poll of nine economists on Tuesday.

Inflation likely rose on higher prices for fuel and food, the survey respondents said. The Muslim holy month of Ramadan began in mid-May this year, pushing up food consumption as devotees break-day long fasts with communal feasting.

The inflation rate was 1.4 per cent in April on the back of higher food costs, but came in lower than expected on steady fuel prices.

Malaysia's central bank had left its key interest rate unchanged in its last review on a lower inflation rate and steady economic growth, after the country's former ruling coalition was ousted in a shock election upset. The central bank next meets on July 11.

REUTERS