news

Economic Report 2021/2022: Malaysia's inflation set to moderate to 2.1% in 2022 on better economic prospects, stable oil prices

KUALA LUMPUR (Oct 29): Malaysia's inflation, measured by the consumer price index (CPI), is expected to moderate from current levels to 2.1% next year, following better economic prospects and stable crude oil prices.

In 2022, consumption demand for goods and services by households is expected to be supported by expectations of improved employment conditions, while the projected growth in private investment activities and the implementation of the 12th Malaysia Plan will further augment domestic demand, said the 2021/22 Economic Report released on Friday.

In the first eight months of 2021, CPI, which is based on a weighted average market basket of consumer goods and services, rose by 2.3% and is expected to continue for the rest of the year. For full-year 2021, inflation is expected to come in at 2.4%.

"The reversal from deflation in 2020 (of 1.2%) was due to higher pump prices of RON97, RON95 and diesel, following escalating global crude oil prices, albeit lower electricity charges owing to the bill discounts given under the government's stimulus packages," the report said.

Meanwhile, the country's producer price index (PPI) is also set to stabilise next year on anticipated recovery of the domestic and global economies.

Between January and August 2021, PPI by local production increased by 8.2% and is expected to remain stable throughout the year due to the normalisation of input costs.

“The growth is attributed to higher global commodity prices, particularly crude oil and natural gas,” said the report.

By sector, the surge in PPI was particularly contributed by a significant increase in agriculture, forestry and fishing (36.6%), followed by mining (30.2%), manufacturing (4.3%) and water supply (0.7%) sectors. The index for electricity and gas supply, however, dropped by 0.7% in the same period.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE
RELATED POSTS
  1. Malaysia's October 2021 inflation at 2.9% year-on-year — DOSM
  2. Finance Minister confirms Cabinet considering Najib’s request for home, land worth RM100m
  3. Malaysia among 10 countries with national budgets fully aligned to UN's SDG assessments, says Tengku Zafrul