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KUALA LUMPUR – MIDF Research is forecasting Malaysia’s headline inflation rate to average at 3.0% this year, which would be relatively stable compared to regional peers as the country’s price increase is offset by subsidised fuel.
Domestic food inflation is expected to ease off marginally in the coming months, it said.
“However, depreciation of the ringgit versus the US dollar will continue to widen Malaysia’s food imported bill, especially being a net food importing country,” it said in a research note.
MIDF Research said further declines in the ceiling price of bottled palm cooking oil have reflected the positive effects of a mild correction in global commodity prices.
It said that following the resumption of grain exports from Ukraine, global food inflation has shown moderating trends since July.
“Going into 2023, we foresee overall price growth to soften amid better food supply, lower commodity prices, and appreciation of the ringgit against the greenback.
“We project headline inflation to average at 2.3% for 2023,” it added.
The Domestic Trade and Consumer Affairs Ministry has further reduced the ceiling price for bottled pure palm cooking oil following the drop in crude palm oil prices.
Its minister Datuk Seri Alexander Nanta Linggi said that the maximum retail price for the 5kg bottled cooking oil, for the period of October 8 to November 7, has been reduced to RM31.50, from the current RM33.50. – Bernama, October 4, 2022