Inflation in Malaysia likely moderating

Economists expect Bank Negara to continue normalising interest rates by raising the overnight policy rate gradually to 3.25%.

PETALING JAYA: Despite the persistent cost pressure, headline inflation – as measured by the change in consumer price index (CPI) – in Malaysia is expected to moderate in the year ahead.

Among the factors contributing to this is the strengthening of the ringgit, slowing global demand, easing commodity prices as well as government’s move to maintain subsidies over the medium term.