KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Inflation Overview:
- Consumer Price Index (CPI) in Malaysia rose 1.5% year-on-year in February 2025, reflecting a slight slowdown compared to the expected 1.6% increase.
- The housing and utilities sectors saw a deceleration in price growth, contributing to the overall slowdown in inflation.
Key Inflation Drivers:
- Food & Non-Alcoholic Beverages: These prices increased by 2.5% year-on-year, with this category holding a significant 29.8% weight in the CPI calculation.
- Core Inflation: This, which excludes volatile food prices and government-controlled items, rose 1.9% year-on-year.
Sectoral Inflation (February 2025):
- Food & Beverages: +2.5% YoY
- Housing, Utilities & Fuels: +2.3% YoY
- Transport: +0.7% YoY
- Information & Communication: -5.3% YoY (a notable decrease)
- Personal Care & Miscellaneous Services: +3.7% YoY
- Furnishings & Household Maintenance: +0.3% YoY
Outlook for 2025:
- Inflation Forecast: RHB projects 2.4% inflation in 2025, up from 1.8% in 2024, driven by easing global commodity prices and moderate domestic demand.
- Fuel Subsidy Reform: The upcoming reform in mid-2025 is expected to have a limited impact on inflation if implemented gradually.
Monthly Data:
- On a month-on-month basis, CPI rose 0.4% in February, a significant improvement from January’s 0.1% decrease.
Conclusion:
- Inflation in Malaysia is expected to stay manageable through 2025, with sectors like food, housing, and transport continuing to drive price changes, but overall inflation remaining relatively stable.
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