Inflation Expected to Rise in Coming Months Despite Low June Rate

Tuesday, Jul 22, 2025 7:12 pm ET1min read

Inflation in Malaysia is expected to trend higher from July due to potential second-round effects from the expanded SST and low base effects from the previous year. UOB senior economist Julia Goh forecasts full-year inflation to average at 1.8%, below Bank Negara's projected range. The inflation outlook remains benign, but a more accommodative monetary policy stance may be warranted to support domestic growth into 2026.

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