MIDF RESEARCH MAINTAINS CPI INFLATION FORECAST AT 2.3 PCT FOR 2021
KUALA LUMPUR, Nov 26 -- MIDF Research has maintained its consumer price index (CPI) inflation forecast at 2.3 per cent for this year although the October figure came in higher than expected.
It said in a research note today that the increase in the prices of foods and transport would continue to keep inflation elevated in view of the high global commodity and oil prices. "Moreover, the cost-push inflation is expected to continue given the continued rise in production costs," it added.
Based on the recent purchasing managers index survey, input prices and even selling prices have continued to increase as producers face challenges from the supply chain disruption, rising energy prices and shortages of materials.
"This pressure may persist going into next year if the supply challenges continue in the coming months.
"To a certain extent, we also expect the recovery in demand will eventually result in some upward pressures on prices as domestic economic activities have been improving following the reopening of the economy after the full lockdown earlier this year," the research house said.
The Department of Statistics Malaysia (DoSM) today released Malaysia's CPI data which saw it increase 2.9 per cent year-on-year to 123.7 in October 2021 against 120.2 in the same month of the preceding year.
DoSM attributed the higher CPI, a measure of inflation, to rising fuel prices and the discontinuation of electricity discounts in September 2021.
-- BERNAMA
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