KUALA LUMPUR: Malaysia’s headline and core inflation for 2024 both declined to 1.8 per cent in 2024, compared with 2.5 per cent and 3.0 per cent respectively in 2023.
Bank Negara Malaysia (BNM) said headline inflation edged lower to 1.8 per cent in the fourth quarter (4Q) of 2024 (3Q 2024: 1.9 per cent).
"Lower inflation was observed for mobile communication services and RON97 petrol which was partially offset by higher inflation in food-related items, particularly fresh vegetables, fish and seafood,” it said in a statement.
Meanwhile, the central bank said core inflation was lower at 1.7 per cent (3Q 2024: 1.9 per cent), driven largely by the moderation in inflation for mobile communication services which declined by 10 per cent (3Q 2024: 0 per cent).
Inflation pervasiveness remained moderate.
The share of Consumer Price Index (CPI) items recording monthly price increases remained below the long-term average of 39.8 per cent (3Q 2024: 38.9 per cent; 4Q 2011-2019: 41.7 per cent).
Going forward, inflation is expected to remain manageable in 2025 amid easing global cost conditions and the absence of excessive domestic demand pressures.
"While the recently announced domestic policy reforms would contribute to some upward pressure on prices, the overall impact on inflation is expected to be contained,” it said.
Nevertheless, upside risks could arise from larger cascading effects from broader CPI price policies. - Bernama
