KUALA LUMPUR, Feb 11 (Bernama) -- Bursa Malaysia ended higher today as buying on selected blue chips continued, said a brokerage. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.85 points or 0.51 per cent to 1,756.39 from Tuesday’s close of 1,747.54. The barometer index opened 3.69 points higher at 1,751.23 before moving as low as 1,745.51 in early trade to as high as 1,757.15 during the mid-afternoon session. Market breadth was positive with gainers leading losers 575 to 474, while 549 counters were unchanged, 1,087 untraded and 11 suspended. Turnover expanded to 2.55 billion units valued at RM3.06 billion from yesterday’s 2.19 billion units valued at RM2.35 billion.
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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