Selangor Journal
Shoppers wearing protective masks shop at a market, amid the Covid-19 outbreak in Kuala Lumpur, on November 6, 2020. — Picture by REUTERS

Inflation to remain manageable between 2.8 to 3.8 pct this year

KUALA LUMPUR, Feb 24 — The inflation rate is expected to remain manageable and is anticipated to range between 2.8 per cent and 3.8 per cent in 2023, following slower economic prospects as well as stable commodity prices.

The Malaysia Consumer Price Index (CPI) rose to 3.3 per cent in 2022 from 2.5 per cent in 2021.

In the Updates on Economic and Fiscal Outlook and Revenue Estimates 2023 report released today, the Ministry of Finance (MoF) said the inflation outlook will also be affected by fluctuations in foreign exchange rates and prolonged supply disruptions.

“Empirically, a one percentage point change in the exchange rate and crude oil price will have a 0.337 and 0.112 percentage point impact on inflation respectively,” it said.

Meanwhile, MoF said the Producer Price Index (PPI) growth is expected to moderate with the anticipation of stable global input costs.

— Bernama

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