KUALA LUMPUR – The inflation rate is expected to remain manageable and is anticipated to range between 2.8% and 3.8% in 2023 following slower economic prospects as well as stable commodity prices.
The Malaysia Consumer Price Index (CPI) rose to 3.3% in 2022 from 2.5% in 2021.
In the Updates on Economic & Fiscal Outlook and Revenue Estimates 2023 report released today, the Finance Ministry (MoF) said the inflation outlook will also be affected by fluctuations in foreign exchange rates and prolonged supply disruptions.
“Empirically, a one percentage point change in the exchange rate and crude oil price will have a 0.337 and 0.112 percentage point impact on inflation respectively,” it said.
Meanwhile, MoF said the Producer Price Index (PPI) growth is expected to moderate with the anticipation of stable global input costs. – Bernama, February 24, 2023
