Deflation persisted at an unchanged rate in January (-0.3% YoY; consensus: -0.4%; Dec: -0.3%)
MoM (0.1%; Dec: 0.2%): softened slightly as demand was weighed by the tightened restriction measures amid the second wave of COVID-19 infections.
Core inflation (0.2%; Dec: 0.2%): increased at the same pace for five straight months.
The CPI data has been rebased to 2019 from 2015.
Steeper deflation of non-core goods was equally offset by a sustained inflation in core items
Food & non-alcoholic beverages (0.6%; Dec: 1.4%): inflation moderated to a six-month low primarily due to lower prices of processed vegetables (3.4%; Dec: 12.1%) following the easing of drought conditions.
Transportation & communication (-1.9%; Dec: -3.1%): deflation narrowed to an 11-month low, reflecting the substantial rise in global oil price (USD54.77/barrel; Dec: USD49.99/barrel) as Saudi Arabia announced a voluntary additional production cut of 1m barrels per day.
Mixed inflation trend across advanced and developing regions
ID (1.6%; Dec: 1.7%): decreased marginally following the reimplementation of partial lockdown measures in Java and Bali.
Euro area (0.9%; Dec: -0.3%): first inflation in six months underpinned by rising prices in Germany on the back of a reversal in VAT reduction, higher energy prices and a new carbon tax.
Extended fiscal support, increase in energy prices and the recent gradual relaxation of COVID-19 restrictions are expected to lead to a higher inflationary pressure. However, the rise may be modest in the immediate term as consumer sentiment needs some time to fully recover.
The Bank of Thailand (BoT) is expected to stand pat on policy rate (0.5%) underscored by the prospect of further economic recovery, especially with the kick-off of the vaccination program this month, and the BoT’s aim to preserve the limited policy space.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 5203 views | 5 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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