Malaysian inflation likely to have accelerated in April – DBS Bank

Malaysian inflation has bottomed for now. The April figure is set to be released this week. According to a DBS Bank research report, Malaysian inflation is likely to have accelerated to 1.6 percent year-on-year, from March’s print of 1.3 percent. Pre-election spending and a general rebound in overall economic conditions and employment prospects are expected to lift price pressure.

Besides, oil prices are rising, which would push domestic pump prices higher. The only modifying factor is that the GST would be removed from June onwards, which could see a one-off dip in inflation. But beyond the one-off effect from the GST, the inflation is expected to rise gradually towards the end of the year, added DBS Bank.

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