June inflation rate at 3-year low after GST withdrawal

June inflation rate at 3-year low after GST withdrawal

Costs were down across all goods and services except for the transport index, which rose due to higher fuel prices.

Free Malaysia Today
Two shoppers inspect the price of a bag sold at a shopping mall. Prices of goods is said to have dropped after the GST was zero-rated recently. (Bernama Pic)
KUALA LUMPUR:
Malaysia’s consumer price index rose at its slowest pace in more than three years in June, following the withdrawal of a goods and services tax (GST), government data showed.

The inflation rate in June was at 0.8%, its lowest since February 2015, when it was at 0.1%

The figure was below the 1.3% forecast by a Reuters poll and sharply down from the 1.8% recorded in May.

The abolishment of GST as well as discounts and price control measures during the Eid al-Fitr celebrations had a significant impact on prices of goods in June, the Statistics Department said in a statement.

The new government led by Dr Mahathir Mohamad, put in office after the May 9 general election, scrapped the 6% consumption tax on June 1.

In June, costs were down across all goods and services except for the transport index, which rose 5.5% from a year earlier due to higher domestic fuel prices, data from the department showed.

Malaysia’s central bank left its key interest rate unchanged at 3.25%in its last review, citing slowing inflation and steady economic growth.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.