Inflation pressure minimal risk to economic recovery

Bank Negara said average inflation for 2022 is likely to remain moderate as the base effect from fuel inflation dissipates but core inflation is expected to edge upwards as economic activity normalises amid the environment of high input costs.

PETALING JAYA: While global inflationary pressure will continue to rear its ugly head, there is minimal risk of it disrupting the domestic economic recovery, thanks to the government’s measures.

Economists expect the consumer price index (CPI) to trend higher in the first few months of the year to reflect higher food and fuel prices before easing lower.

Bank Negara said average inflation for 2022 is likely to remain moderate as the base effect from fuel inflation dissipates but core inflation is expected to edge upwards as economic activity normalises amid the environment of high input costs.