Malaysia inflation slows for eight consecutive months

The 1.6% inflation gives Bank of Malaysia 'more elbow for monetary easing' whenever necessary.

According to OCBC, inflation slowed for the eighth month to 1.6% yoy (expected 1.7% yoy), giving BNM “more elbow room for monetary easing if the need arises”, according to MIER. Meanwhile, IPI growth came in better than expected at 7.6% in May.

Here's more from OCBC:

Fitch affirmed Malaysia’s long-term foreign and local currency issuer default ratings at A- and A respectively with stable outlook, citing the country’s track record of macroeconomic stability and strong net external position. S&P also affirmed Malaysia’s “A-/A-2” long-term foreign and “A/A-1” local currency issuer default ratings with the outlook on the long-term rating remaining stable.

Datuk Seri Mustapa Mohamad, minister of Internal Trade and Industry commented that Malaysia is on track to achieve the official target growth rate of 5 – 6% this year.