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Wednesday, 23 May 2018

(The Star) RAM: Inflation to rise slightly

KUALA LUMPUR: RAM Rating Services Bhd expects Malaysia’s headline inflation to increase slightly to 1.5% in April against 1.3% in March, mainly attributed to a reduction in the negative growth contribution of retail fuel.

The rating agency said the average price of RON95 fuel fell only 0.3% year-on-year (y-o-y) in April, compared with a 4.4% y-o-y decline in March.

For 2018, headline inflation was forecast to come in at 2.3% after charting 3.7% in 2017, it said.

Head of research Kristina Fong said there might be a downside risk to RAM’s projection following the new administration’s move to zero-rate the goods and services tax effective June 1 and its proposed intention to maintain the retail fuel price at current level. — Bernama