PETALING JAYA: Inflation rose for a fourth straight month in March, with consumer prices rising across the board led by increases in food prices and utility bills.
The Statistics Department yesterday said the consumer price index (CPI) climbed 1.3% in March to 111.7 from a year ago after it climbed 1.2% in February.
The index was flat compared with February.
A median forecast in a Bloomberg survey of 15 economists had expected a 1.5% increase.
Food prices, which accounted for 31% of Malaysia’s inflation index, rose 1.7% in March, while the cost of housing, water, electricity, gas and others fuels rose 1%, the report said.
The only category that saw a decrease in prices was clothing and footwear.
The tame inflation number could also have been influenced by the ringgit’s recent strength, which helped lower the cost of imported goods.
The ringgit had appreciated 4% against the US dollar since Bank Negara raised its overnight policy rate (OPR) on March 15.
The local currency gained 7% against the euro and yen during the same period.
Policymakers are scheduled to meet on May 13 to decide on the OPR.
Rising prices, albeit at a benign pace, may give room for policymakers to “normalise” interest rate, as the economic recovery picks up.
Source: The Star Online
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