Business

Headline inflation rises to 3% in 2022: Bank Negara

The country’s headline inflation moderated to 3.9% in Q4 versus 4.5% in Q3 of 2022

Updated 3 years ago · Published on 10 Feb 2023 1:14PM

Headline inflation rises to 3% in 2022: Bank Negara
Malaysia recorded another jump in its headline inflation, from 2.5% in 2021 to 3.3% in 2022. – The Vibes file pic, February 10, 2023

KUALA LUMPUR – Malaysia’s headline inflation increased to 3.3% in 2022 compared with 2.5% in 2021, while core inflation averaged higher at 3% from 0.7% in 2021, said the central bank.

For the fourth quarter, Bank Negara Malaysia said the country’s headline inflation moderated to 3.9% versus 4.5% in the third quarter of 2022, mainly due to the fading base effects in electricity inflation, a key contributor to the higher inflation in the third quarter of 2021.

“The moderating trend in key global commodity prices partly led to lower inflation in some consumer price index (CPI) items, including fuel,” it said in a statement announcing the fourth quarter gross domestic product (GDP) growth and the full-year performance.

The central bank said inflation for some key staple food items, such as fresh meat and eggs, also moderated during the quarter.

However, the downward impact of these factors was partially offset by higher core inflation. Core inflation increased to 4.2% (3Q 2022: 3.7%), driven by the continued strength in demand amid a still-elevated cost environment.

“For 2023, the headline and core inflation rates are expected to moderate but remain elevated in 2023 amid lingering cost and demand pressures,” it said.

It added that core inflation is expected to remain elevated in the near term, in part due to the low base in the first half of 2022.

Existing price controls and fuel subsidies, as well as the remaining spare capacity in the economy, will continue to partly contain upward pressures to inflation, the central bank said.

The inflation outlook remains highly subject to any changes to domestic policy, as well as global commodity price developments, it added.

The regulator’s Annual Report 2022, the Economic and Monetary Review 2022, and the Financial Stability Review for the Second Half of 2022 on March 29, 2023.

It also announced the country’s GDP growth for 4Q, which grew by 7% from 14.2% in 3Q 2022, as support from the stimulus measures and low base effects waned.

For the whole of 2022, Malaysia’s economic growth rose to a 22-year high of 8.7% against 3.1% in the previous year. – Bernama, February 10, 2023

Related News

Malaysia / 2mth

Former PM Ismail Sabri expected to be charged tomorrow

Business / 2y

Bank Negara maintains OPR at 3% to support economic growth

Malaysia / 2y

Boost safeguards within financial services industry, says workers’ rights organisation

Videos / 2y

OPR to remain at 3%, says Bank Negara

Business / 2y

Ringgit’s performance not reflecting positive prospects of economy: BNM

Malaysia / 2y

20 NGOs back govt ban on Israeli-flagged ships

Spotlight

Malaysia

Haze: Schools in Johor, Melaka, and Negeri Sembilan to close tomorrow

Malaysia

Tun Mahathir’s health improves, but not ready to leave hospital

Malaysia

LPT3 row puts Kelantan’s infrastructure priorities under scrutiny

Malaysia

Terengganu royal family member sues two banks over RM1.99m missing from savings

Malaysia

Irene Sofiya murder probe referred to Johor prosecutors for review

Malaysia

Teacher denies negligence charges over fatal school SUV crash in Kota Bharu

Malaysia

Sulaiman Md Ali opts out of Melaka polls, will not defend Lendu

You may be interested

Business

SC targets stronger board oversight through higher standards for company secretaries

Business

Oil prices retreat below US$104 as markets weigh Middle East risks

Business

Oil prices stay above US$93 as Middle East tensions put pressure on ringgit