Inflation in Malaysia accelerated in January, fueled by rising costs of food and transport, data from the Department of Statistics showed Wednesday.

Inflation rose to 2.4% in January from 2.2% in December, matching economists' forecast. Food prices grew 3.7% year-on-year and were 1.2% higher compared to the previous month.
Prices of food and non-alcoholic beverage prices increased 3.6% during the month, while non-food prices rose 1.9%. Transport costs were 4.3% higher than in January last year.
Clothing and footwear prices, however, fell 1.3% from a year earlier while costs of utilities increased 1.4%.
The statistical office said that food and non-alcoholic beverages, housing, water, electricity, gas and other fuels and transport together accounted for 84.8% of the overall increase recorded for the current period.
On a monthly basis, consumer prices gained 0.6%. Transport charges grew 0.3% from the previous month, while prices of food and non-alcoholic beverages were 1.2% higher.
Malaysia's central bank forecasts a modest increase in inflation in the coming months, driven by rising global commodity prices. In its most recent monetary policy meeting last month, the bank left the benchmark overnight policy rate at 2.75% for a third straight rate-setting session as demand-side pressures on inflation remain largely muted.
However, the monetary policy council indicated that going forward, additional policy tools such as the statutory reserve requirement and macroprudential lending measures may be considered to avoid the risks of macroeconomic and financial imbalances as large and volatile capital flows threaten fiscal stability.
Latest figures showed that the economy expanded faster than expected in the fourth quarter, driven by services and manufacturing sectors. Gross domestic product climbed 4.8% annually following the 5.3% rise in the third quarter.
(Source: RTTNews)