KUALA LUMPUR, Oct 6 — Malaysia’s inflation is among the lowest in the region, but rising upstream cost pressures could pose an inflation risk later this year, said the World Bank lead economist Apurva Sanghi.
He said producer price inflation had swung from negative territory in December 2023 and February 2024 to over 10 per cent in June and almost 11 per cent in August this year.
This had renewed upstream cost pressures, presenting a potential inflation risk later in the year, he told the media during a briefing on the October 2026 East Asia and Pacific Economic Update here today.
Nevertheless, the World Bank projected headline inflation to rise modestly to two per cent this year, with subsidies limiting the pass-through of inflation to households despite higher energy prices.
