Headline CPI likely to remain moderate in 2H

CGS-CIMB Research maintained its 2023 inflation forecast at 2.8%, while Kenanga Research kept its estimate at 2.9%. — Bloomberg

PETALING JAYA: While the country’s headline inflation is expected to continue cooling in the coming months, there are still uncertainties that could reverse the trend.

According to analysts, Malaysia’s inflation risk remains biased to the upside due to geopolitical tensions, such as Russia’s withdrawal from the Black Sea grain deal, as well as changing weather conditions that could affect global food and commodity prices.