• Inflation fell -0.4% yoy, but increase 0.2% mom

• Core inflation grew by 0.3%

• Global inflation remains low

• Full year inflation forecast lowered to 1.7%

Malaysia recorded a second straight month of decline in consumer prices since November 2009, as cost of transport fell at a slower rate. Consumer prices decreased 0.4% yoy in February, following a 0.7% fall in the previous month. On a monthly basis, consumer prices rose by 0.2% in February, swinging from a 0.5% declined in January.

Food & non-alcoholic beverages (FNAB) which contributes 29.5% of CPI weights continued to increase in February by 1.0%. Increased in the FNAB was attributed by the prices of the food sub-group index of meat (+2.1%), milk & eggs (+1.8%), fish & seafood (+0.1%) and fruits (+0.1%). Conversely, the index for sub-group vegetables decreased 6.3%, followed by sugar, jam, honey, chocolate & confectionery (-2.2%) and oils & fats (-0.6%). By grouping, consumer prices for food at home continued to drop by -0.5% yoy while that of food away from home rose further by 3.4% yoy.

The CPI for the period of January-February 2019 declined by 0.5% as compared to the same period last year.

Source: BIMB Securities Research - 25 Mar 2019