Headline inflation accelerated slightly to +1.9%yoy in Oct-24. Malaysia’s headline CPI inflation re accelerated to +1.9%yoy in Oct-24, marginally higher than our estimate driven mainly by higher food inflation (+2.3%yoy; Sep-24: +1.6%yoy). Non-food inflation, however, eased to +1.7%yoy (Sep-24: +2.0%yoy), while core CPI inflation remained steady at +1.8%yoy.
Stable inflation in Peninsular and Sabah, but eased in Sarawak and KL. Inflation across states and regions generally remained stable in Oct-24. Several states like Johor, Perlis and Melaka recorded higher inflation, while inflation in Sarawak and Kuala Lumpur moderated last month.
Moderate inflation at +2.0% in 2024. We maintain our estimation that CPI inflation will moderate to +2.0% in 2024 (2023: +2.5%) which indicates a rather muted impact of policy changes to pushing overall price pressures higher. In view of the stable inflation and no significant demand pressures, we foresee OPR will be kept at 3.00% this year and also throughout next year.
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