Source: The Sun Daily
Malaysia’s headline inflation slipped marginally to 2% in May from a year ago, as the initial price shock due to the Goods & Services Tax (GST) implemented last year gradually faded and the unchanged petrol pump price for the month kept a lid on inflationary pressure.
According to the Statistics Department, food and non-alcoholic beverages fell to 4.1%, moderating for the third consecutive month due decline in fresh fish prices which had drop for two successive months, while personal care products prices and garments slid by 0.3% and -0.1%, respectively on a monthly basis.
MIDF Research, however, noted that prices of fresh vegetables continued to rise, registering a strong increase of 4.8% from April, and 16.9% from a year ago.
“This can be reasonably attributed to tight supply and a weaker ringgit. As the bulk of the vegetables were imported, the weaker ringgit led to higher prices while the prolonged heatwave kept yield of vegetables supply repressed,” it said in a note yesterday.
According to the Consumer Price Index, fresh meat prices in May were flat after falling for three successive months. However, MIDF expects prices to climb in anticipation of the increase in demand due to the coming festive season.
“For now we are maintaining our inflation rate forecast at 2.6%, although we admit there is an upward pressure particularly due to the heatwave and potentially higher than expected rebound in the oil price,” MIDF said.