Malaysia's inflation rate to rise by 1.5% and 2% next year, World Bank says

"Additionally, the reintroduction of the float pricing mechanism for RON95 petrol and diesel in January in 2020 is expected to result in modest increases in transportation costs at the prevailing global oil prices, ” the World Bank report said.

KUALA LUMPUR: Malaysia’s headline inflation is expected to increase modestly in 2020, with consumer price inflation to average higher in the range of 1.5%-2% cent next year as compared with 0.7% projected for 2019, said the World Bank Group.

In its 21st edition of the Malaysia Economic Monitor "Making Ends Meet" report launched on Monday, it said the higher projection was mainly reflecting the lapse in the effects of consumption tax policy changes in 2018.