MALAYSIA INFLATION MAY REBOUND AFTER MARCH SLOWDOWN -- MOODY'S ANALYTICS

SINGAPORE, April 24 (Bernama) -- Malaysia's headline inflation is expected to tick up in the latter half of the year, following its lowest reading in more than four years in March, according to Moody’s Analytics.

The firm said that both the transport and housing, and utilities categories are at risk of stronger inflationary pressures in the coming months, as the government rolls back fuel subsidies and raises electricity tariffs.

“Unpredictable weather is also a key risk that could keep food inflation sticky,” Moody’s Analytics said in its Asia-Pacific Daily Briefing report.

Malaysia’s consumer price index (CPI) slowed to 1.4 per cent year-on-year (y-o-y) in March, down from 1.5 per cent in February and below the firm's forecast of a 1.6 per cent rise.

The slowdown was mainly driven by easing housing and utilities inflation, which moderated for a third straight month as cost pressures on water supply and services declined.

Transport inflation, the third most heavily weighted category in the CPI basket, also held steady, even as average diesel prices rose compared to a year earlier.

Meanwhile, Moody’s Analytics projected Singapore’s full-year inflation in 2025 to come in at 0.9 per cent.

Singapore's headline inflation for March remained stable at 0.9 per cent y-o-y, slightly below the one per cent forecast. Core inflation eased for the sixth consecutive month, falling to 0.5 per cent from 0.6 per cent in the previous month, its lowest level since February 2021.

Price pressures softened in major categories such as accommodation and transportation, though a slight increase in food prices prevented a drop in headline inflation.

Falling global commodity prices, particularly Brent crude oil, are expected to keep both headline and core inflation subdued throughout 2025.

“Notably, Brent crude fell below US$65 per barrel recently. We expect the price to remain low due to weakening global demand and improved supply conditions,” it said.

The firm added that with core inflation comfortably within the Monetary Authority of Singapore’s target of below two per cent, the central bank is likely to maintain its easing monetary policy settings at its July meeting.

-- BERNAMA