Inflation expected to rise by up to 2.8% in 2025

BIMB Securities Research believes that the current downtrend in inflation will be temporary, with gradual increases expected by mid-2025.

PETALING JAYA: Analysts expect inflation to grow by as much as 2.8% in 2025, on the back of higher taxes and wages, base effects and continued volatility in global commodity prices and foreign-exchange (forex) markets.

MIDF Research estimated full-year inflation to pick up to 2.8%, driven mainly by changes in government policies such as subsidy rationalisation efforts in the middle of this year.