kuala lumpur: Malaysia’s headline inflation rose to 3.3% in 2022 from 2.5% in 2021, while core inflation rose by an average of 3% from 0.7% in 2021, Bank Negara Malaysia (BNM) said. .
For the fourth quarter (4Q), it said the country’s headline inflation eased to 3.9% from 4.5% in the third quarter of 2022. Q3 2021.
In a statement announcing fourth-quarter gross domestic product (GDP) growth and full-year results, it said, “Moderate trends in key global commodity prices have pushed down several consumer price index (CPI) items, including fuel. It has partially led to lower inflation,” he said. .
The central bank said inflation in some key staples such as fresh meat and eggs eased during the quarter as well.
However, the downward impact of these factors was partially offset by higher core inflation. Core inflation he rose to 4.2% (Q3 2022: 3.7%). This was driven by continued strength in demand in a still rising cost environment.
Analyzing core inflation, Governor Tan Sri Nor Shamsaiah Yunus said at a press conference that headline inflation is driven by many factors, mainly reflecting supply and demand factors and price items.
“On the one hand, core inflation is a better indicator of underlying inflation, which is influenced by demand factors. With this in mind, I would like to emphasize three points – (first) we inflation is driven primarily by the supply factor.
“(Second) the persistence of core inflation suggests that the demand factor contributes to potential price pressures. Rates are slow to ease.
“(And thirdly) the overnight policy rate hike is being done to manage demand pressures,” she said.
Headline and core inflation are expected to moderate for 2023, according to BNM, but remain high amid lingering cost and demand pressures.
Core inflation is expected to remain high in the short term, partly because of the low base for the first half of 2022, he said.
The central bank said existing price controls and fuel subsidies, as well as remaining reserves in the economy, could continue to partially limit upward pressure on inflation.
He added that the inflation outlook is highly dependent on changes in domestic policies and developments in global commodity prices.
On 29 March 2023, BNM will publish its 2022 Annual Report, 2022 Economic and Currency Review and 2H22 Financial Stability Review.
BNM today released the country’s GDP growth in Q4 2022, up 7% from 14.2% in Q3 2022 as support from stimulus measures and low base effects weakened.
Overall in 2022, Malaysia’s economic growth rose to a 22-year high of 8.7% from 3.1% the previous year. – Bernama
