Malaysia’s inflation rate drops to 2-year low in July

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KUALA LUMPUR: Malaysia’s consumer price index (CPI) rose 2% from a year earlier in July, the lowest inflation print in two years, government data showed on Friday.

The rate was less than the 2.1% rise forecast by 21 economists in a Reuters poll, and the 2.4% seen in June. It was also the lowest since August 2021.

The cooling in inflation last month was due to a slower increase in prices of food and non-alcoholic beverages, and at restaurants and hotels, the Department of Statistics said in a statement.

Last week, Malaysia’s central bank said headline and core inflation will moderate further in the second half partly due to a higher comparative base last year.

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