Headline inflation unlikely to exceed 3%

Kenanga research said: "“As Malaysia prepares for the transition towards an endemic Covid-19 phase, most of the restrictions on the economic and social sectors are expected to be lifted as early as mid-October. “This may cause a surge in consumer spending due to the release of pent-up demand and could trigger an increase in prices.“Hence, the inflation rate is likely to rise in the fourth quarter and hover around 2.3%-2.7%.”

PETALING JAYA: Headline inflation, which grew by an average of 2.3% year-on-year (y-o-y) in the first eight months, is unlikely to hover above 3% by year-end.

Despite cost pressures with the gradual reopening of the economy, analysts and economists said the inflation rate would unlikely go above the 3% mark.