Inflation in developing economies, including Malaysia, may return to normal readings

“Also, this pair (Malaysia and Indonesia) is rich in natural resources such as energy commodities (thermal coal, oil and gas) and mineral ores (aluminium, iron and nickel), which reduces their reliance on imports and the associated exposure to imported inflation," Moody’s Analytics said in a research note.

KUALA LUMPUR: Inflation in developing economies, including Malaysia and Indonesia, is likely to return to more normal readings at a pace akin to those of developed economies.

The readings might reflect the relatively heavy use of government subsidies to keep domestic prices low, thereby reducing inflation persistence, Moody’s Analytics said in a research note, Bernama reported.