Malaysian headline inflation likely to have slowed in June

Malaysian headline inflation is set to be released this week and is likely to see a downward shirt. According to a DBS Bank research report, consumer price inflation is likely to have slowed to 1 in June percent year-on-year from 1.8 percent in the prior month.

In the midst of increased energy prices, inflation was supposed to be on an upward trend if not for the zero rating of the GST. After the surprise outcome in the recent election, the new government abolished the GST and reintroduced the Sales and Services Tax. The alterations in the tax regime are likely to considerably lower the end-consumer prices, which would be captured in the CPI index, stated DBS Bank.