Malaysia inflation seen edging up to 1.3% year-on-year in August : poll

[KUALA LUMPUR] Malaysia's annual inflation rate in August likely increased to 1.3 per cent, a Reuters poll showed, slightly faster than the previous month's pace.

The pace of inflation probably increased because of higher food prices, though transport costs remained low despite a slight hike in fuel prices, economists said.

In July, the consumer price index rose 1.1 per cent from a year earlier, the fifth consecutive month in which the inflation rate slowed.

Annual inflation reached a seven-year peak of 4.2 per cent in February, but has since moderated as the effects of a goods and services tax imposed in April 2015 fade.

In July, Malaysia's central bank cut its inflation projection for the year to 2-3 per cent from 2.5-3.5 per cent.

REUTERS