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Malaysia's July inflation rate at 0.9%, meets forecast

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Malaysia's consumer price index in July rose 0.9 per cent from a year earlier, up marginally from the previous month, government data showed on Friday.

[KUALA LUMPUR] Malaysia's consumer price index in July rose 0.9 per cent from a year earlier, up marginally from the previous month, government data showed on Friday.

The annual inflation rate was in line with a Reuters poll forecast, and up slightly from the 0.8 per cent recorded in June.

June's inflation rate was the lowest in three years, following the government's removal of a 6 per cent goods and services tax that month.

In July, inflation was driven mainly by higher transport prices with the sectoral index rising 6.7 per cent from a year earlier, the Statistics Department said in a statement.

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Overall inflation, however, remained subdued with marginal increases posted by the indexes for housing, education, hotels, food and non-alcoholic beverages, data from the department showed.

Costs were down across all other sectors, with the communications and clothing indexes falling 3.9 per cent and 3.0 per cent respectively, the data showed.

Malaysia's central bank left its key interest rate unchanged in its July 11 review, citing slowing inflation and steady economic growth.

Headline inflation slowed to 1.3 per cent in the second quarter and was expected to moderate further throughout the year.

REUTERS