Malaysian Inflation Likely to Remain Subdued

Dow Jones
Sep 25

0914 GMT - Malaysia's headline inflation could rise moderately to 1.9% this year instead of 2.1% forecast previously, RHB's Chin Yee Sian says in a note. Softer price pressures and higher fuel-subsidy quotas should keep inflation manageable, the economist writes. For the remainder of 2026 and into 2027, inflation will be shaped by global commodity prices, domestic policy changes and potential food-price pressures, she notes. Geopolitical uncertainties and prolonged Hormuz Strait disruptions could keep crude-oil prices volatile, but the pass-through from higher producer costs should be gradual. Price controls, subsidies and a stable ringgit may provide support, she adds. RHB expects Bank Negara Malaysia to hold rates at 2.75% in November before hiking by 25 bps in 1H in a policy-normalization move.

 

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