Malaysia Feb inflation seen quickening to 4% year on year, highest in over 7 years: Poll

[KUALA LUMPUR] Malaysia's annual inflation rate is expected to have accelerated to over a seven-year high at 4.0 per cent in February as transport costs rose, a Reuters poll showed.

Fuel prices fell in February but higher toll costs and a low base from a year earlier were expected to contribute to the higher inflation rate, economists said.

A 4.0 per cent annual inflation rate would be the highest since December 2008 when it hit 4.4 per cent.

The consumer price index rose 3.5 per cent in January, the largest annual increase since March 2014.

The central bank has an inflation target this year of 2.5-3.5 per cent. It said in January it expected inflation to peak in the first quarter before moderating, as low energy and commodity prices persist.

REUTERS