Headline inflation to rise to 2.7% in 2019

  • Economy
  • Monday, 17 Dec 2018

KUALA LUMPUR: Malaysia's 2019 headline inflation is projected to rise to 2.7 per cent, mainly driven by additional pressure from the switch to targeted fuel subsidies, continued spillover effects from the reintroduction of the Sales and Service Tax and low-base effects during the three-month zero-rated Goods and Services Tax period.

RAM Rating Services Bhd (RAM Ratings) said the inflation projection for 2019 would still depend on the implementation of the targeted fuel-subsidy mechanism in the second quarter next year as key details of its implementation, such as the disbursement mechanism, were still scant.