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2026-02-20 10:28:27
[UOB: Malaysian Inflation May Gradually Rise, But Overall Pressure is Manageable] UOB economists Julia Goh and Loke Siew Ting stated in a report that Malaysian inflation may gradually rise in the coming months due to base effects, cyclical factors, and policy-related factors, but overall price pressures are expected to remain manageable. The report points out that the price of subsidized RON95 petrol is likely to remain unchanged until the end of 2026, while a stronger ringgit will help limit imported inflation, having only a partial transmission effect. Despite strong GDP growth in the fourth quarter of 2025, manageable inflation leaves the Central Bank of Malaysia with little reason to adjust policy, and the policy rate is expected to remain at 2.75% by the end of 2026. UOB forecasts that Malaysia's average inflation rate for the whole of 2026 will be 2.0%, higher than 1.4% in 2025.
