{"id":13616,"date":"2022-03-30T12:28:21","date_gmt":"2022-03-30T04:28:21","guid":{"rendered":"https:\/\/newmalaysiatimes.com\/?p=13616"},"modified":"2022-03-30T12:28:22","modified_gmt":"2022-03-30T04:28:22","slug":"headline-inflation-to-average-between-2-2-3-2-percent-in-2022-bnm","status":"publish","type":"post","link":"https:\/\/newmalaysiatimes.com\/?p=13616","title":{"rendered":"Headline inflation to average between 2.2-3.2 percent in 2022 – BNM"},"content":{"rendered":"\n

KUALA LUMPUR, March 30<\/strong> —\u00a0Malaysia\u2019s headline inflation is forecast to remain manageable this year, averaging between 2.2 percent and 3.2 percent (2021:2.5 percent) while fuel inflation, which underpinned the higher headline inflation in 2021, is projected to moderate in 2022, Bank Negara Malaysia (BNM) said.<\/p>\n\n\n\n

It said this is despite expectations of higher global oil prices, given the assumption that the price ceiling on domestic retail fuel prices would remain in place throughout the year.<\/p>\n\n\n\n

\u201cHigh input costs from rising non-energy commodity prices, however, are expected to exert some pressures on selected fresh food prices, particularly in the first half of the year,\u201d<\/em> BNM said in its Economic and Monetary Review 2021 released today.<\/p>\n\n\n\n

Nevertheless, the central bank said this would continue to be partly mitigated by the price controls on selected food items.<\/p>\n\n\n\n

Of note, for the second half of 2022, the base effect from electricity prices is projected to contribute to a temporary spike in headline inflation, particularly in the third quarter of 2022, BNM said.<\/p>\n\n\n\n

\"headline<\/figure><\/div>\n\n\n\n

Meanwhile, underlying inflation, as measured by core inflation, is expected to average higher between 2.0 and 3.0 per cent in 2022 (2021: 0.7 per cent), driven by the improvement in demand conditions amid lingering cost pressures.<\/p>\n\n\n\n

\u201cFor most items in the core Consumer Price Index (CPI) basket, the price pressures in 2022 largely reflect a normalization after a period of subdued demand and reduced profit margins during the pandemic.”<\/em><\/p>\n\n\n\n

\u201cHowever, prices for some CPI segments, such as food away from home and some high-touch services, are projected to exceed their pre-pandemic trend due to the confluence of stronger demand and the high-cost environment,\u201d<\/em> BNM said.<\/p>\n\n\n\n

Nevertheless, the extent of upward adjustments to core inflation would remain partly contained by the continued slack in the economy and labour market.<\/p>\n\n\n\n

On the overall outlook inflation outlook, BNM said it would remain susceptible to upside risks, particularly from cost-push factors.<\/p>\n\n\n\n

\u201cThese include a more persistent uptrend in input costs due to higher global commodity prices and prolonged disruptions to global supply chains, which could be exacerbated by geopolitical tensions and lockdown in China.<\/p>\n\n\n\n

\u201cHigher input costs could also induce a larger pass-through of costs to consumer prices, should businesses expect them to be more permanent in nature,\u201d<\/em> the central bank said.<\/p>\n\n\n\n

Moreover, there is the risk that excessively high global energy prices could lead to adjustments to domestic retail fuel prices that have remained unchanged since March 2021.<\/p>\n\n\n\n

As for the downside, risks mainly reflect factors that could precipitate a weaker recovery in economic condition, leading to more benign price pressures.<\/p>\n\n\n\n

NMT<\/a> as reported by Bernama<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

KUALA LUMPUR, March 30 —\u00a0Malaysia\u2019s headline inflation is forecast to remain manageable this year, averaging…<\/p>\n","protected":false},"author":1,"featured_media":13617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[524],"tags":[],"class_list":["post-13616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nation"],"featured_image_urls":{"full":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false],"thumbnail":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02-150x150.png",150,150,true],"medium":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02-300x159.png",300,159,true],"medium_large":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false],"large":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false],"1536x1536":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false],"2048x2048":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false],"newsium-slider-full":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false],"newsium-featured":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false],"newsium-medium":["https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2022\/03\/Screen-Shot-2022-03-30-at-12.25.02.png",590,313,false]},"author_info":{"info":["Editor"]},"category_info":"Nation<\/a>","tag_info":"Nation","comment_count":"0","_links":{"self":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/13616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13616"}],"version-history":[{"count":1,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/13616\/revisions"}],"predecessor-version":[{"id":13618,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/posts\/13616\/revisions\/13618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=\/wp\/v2\/media\/13617"}],"wp:attachment":[{"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newmalaysiatimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}