ON A year-to-year (YoY) basis, inflation was tempered by slower growth in housing, utilities and other fuels, following a moderation in water supply service costs.
Softer growth was also observed in recreation services & culture, transport, and furnishing, household equipment & maintenance.
“Meanwhile, price growth in food & beverages were steady while communication costs continued to decline,” said Hong Leong Investment Bank (HLIB) in a recent report.
The transport index eased to +0.7% YoY in large part due to the larger drop in public transport services costs.
Similarly, the index also eased on a month-on-month (MoM) basis, consistent with the softer increase in RON97 petrol prices.
Food inflation stabilised in Feb. Prices of ‘food at home’ ticked up slightly to +0.5% YoY, driven by costlier prices of readymade food, particularly in fresh and instant coconut milk, followed by higher prices of fish and other seafood.
Prices of meat and vegetables also declined at a slower pace. These were offset by the slower ‘food away from home’ inflation.
Meanwhile, on the global front, food inflation picked up to +8.2% YoY mainly due to higher dairy and vegetable oil prices.
Services inflation advanced at a steady pace of +2.0% YoY as the acceleration in insurance and financial services and personal care was offset by the continued decline in communications and softer recreation services and culture.
Meanwhile, core inflation (DOSM) ticked higher on the back of stronger growth in personal care, transport, housing, utilities & other fuels and insurance & financial services.
“We continue to expect Malaysia’s headline inflation to accelerate to +2.7% YoY in 2025 , mainly driven by changes to domestic policy such as the anticipated RON95 subsidy reform and expanded SST scope,” said HLIB.
An escalation of global trade disputes and retaliatory levies could also stoke inflationary pressures further, albeit the extent will be dependent on the details, duration and scope of these trade policies. —Mar 24, 2025
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