Higher cost pressure ahead: AmResearch

  • Business
  • Thursday, 19 Sep 2013

KUALA LUMPUR: News that inflation grew by just 1.9% year-on-year in August, slightly below August’s 2%, was broadly in line with consensus expectations of 2%, but AmResearch is warning of higher cost pressure ahead.

“On a year-to-date basis, inflation increased by a modest 1.7% as overall cost pressure and prices paid by producers have been subdued, backed by ongoing subsidies. However, inflation will pick up in the coming months and consumer prices will probably rise by 3% in September due to adjustment in petrol pump prices,” it said.

Be that as it may, AmResearch is keeping to its inflation growth projection of 2.2% for 2013.

It said Bank Negara was likely to retain the Overnight Policy Rate at 3% at the final Monetary Policy Committee meeting on Nov 7 but envisages a rise of 25 basis point in interest rate in the second half of next year on the back of higher cost pressure.

Meanwhile, AmResearch thinks the Federal Reserve’s decision to continue its US$85bil-a-month bond-buying programme will result in a rebound in regional currencies. 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

AmResearch , inflation , pressure ahead , September


Next In Business News

Oil rises as US, Europe reopen economies
Tuju Setia secures RM189mil construction contract
SCIB accepts RM120mil Prima housing contract
Overwhelming response to Cagamas’s RM1.04b issuances
FBM KLCI slides on fears of stricter lockdown
Aditya Laroia new CEO of Maybank KE Singapore
China close to kicking off long-awaited REITs market
Singapore broker up 544% in a year eyes China
Alibaba leads US$400m investment in Vietnam retail firm
Moody’s expects Malaysia’s growth prospects to remain strong

Stories You'll Enjoy