Malaysia: Inflation seen contracting 0.5% in 2020 – UOB

UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting reviewed the latest set of inflation figures in the Malaysian economy.

Key Quotes

“Headline deflation widened to -1.4% y/y in Aug (from -1.3% y/y in Jul), matching our estimate (-1.4%)… Aug’s higher deflation rate largely reflected lower electricity bills, housing rental, and fuel prices, which more than offset the rise in prices of food away from home, airline tickets, and jewelleries.”

“Year-to-date, consumer price index (CPI) declined by -1.0% in the first eight months of 2020 (Jan-Aug 2019: +0.5%). This alongside expectations of easing deflationary pressures over the next few months suggests that our 2020 full-year CPI projection of -0.5% remains attainable (BNM forecast: -1.5% to +0.5%). Going into 2021, inflation is projected to return to positive territory at 2.1% (BNM forecast: 1.0%-3.0%). Volatile global oil prices and bumpy economic recovery would be wildcards for the inflation outlook.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

LIVE: Trump and Biden clash in final debate, tensions are high

US President Trump and former VP Biden have their last chances to influence undecided voters on the national stage. Markets are watching. Live. 


EUR/USD stable around 1.1820 ahead of US presidential debate

The EUR/USD pair spent the American session consolidating around 1.1820. Hopes for a US stimulus deal backed the greenback ahead of the US presidential debate.


Gold: Bears seeking a continuation below key daily support

Gold prices are back under pressure and below a critical trendline on the daily chart. The swing trading opportunities are caught up in the wash of volatility. A day trading strategy could offer an opportunity if price obeys market structure.

Gold News

AUD/USD fuelled 0.2% by strong PMI Composite in early Asia

AUD is up on the day so far as early data gives the bulls a head start. Early Asia has been kind to Aussie bulls with the price of the currency extending its late New York gains with a robust Construction PMI report, solidly above the 50.0 expansion level, arriving at 54.2.


WTI bulls keep the fuell buring into Wall Street close

West Texas Intermediate crude oil is higher on the day, although has run into resistance and started to consolidate.

Oil News