Inflation steady at 1.1%

• Inflation stable at 1.1% yoy

• Core inflation moderated to 1.4%

• Global inflation remains benign

• Inflation to remain subdued

Malaysia's inflation rate was at 1.1% yoy in October, unchanged from September's four-month low as prices of food & non-alcoholic beverages increased at a softer pace while non-food items rose slightly. On a monthly basis, inflation rose 0.2% compared to neutral growth in September.

Food & non-alcoholic beverages (FNAB), the biggest component of CPI increased at a softer pace of 1.8% yoy, following a 2.2% rise in September. Communication price index staged a significant growth rebound to 1.5% yoy in from -0.1% yoy in September, solely driven by increase in telephone and telefax services sub-index. Healthcare price inflation inched up to 1.4% yoy from 1.3% yoy in September on the back of costlier medical equipment and products. Education services inflation picked up to 1.9% yoy in October from 1.8% yoy. In addition, inflation of housing & utilities sustained at 1.6% yoy, similar to the prior month while those of transport, fell slightly. Other segments showed price moderation.

The CPI for the period of January-October increased by 0.6% as compared to the same period of the preceding year.

Source: BIMB Securities Research - 21 Nov 2019