Malaysia's Consumer Price Index (CPI) fell by 1.4% in November

According to the latest data released by the Malaysian Bureau of Statistics, the country's Consumer Price Index (CPI) for November 2010 stood at 115.0, reflecting a 2.0% rise compared to the same period in 2009 (112.8). This was slightly below the market's projected increase of 2.1%, indicating a moderate inflationary trend. Malaysian economists point to several factors contributing to this rise, including rising global commodity prices, increased costs of alcoholic beverages, and government measures to reduce subsidies on fuel, liquefied natural gas, and white sugar. These factors have pushed up the prices of pre-packaged goods, signaling a gradual increase in inflationary pressures. Despite the upward trend, inflation remains under control, and it is expected that the central bank will maintain its current interest rate policy. The overnight deposit rate is likely to stay at 2.75% through the end of the year. Analysts believe that Malaysia’s economy will continue to grow steadily in 2011, with inflation expected to reach 3.4% as raw material costs climb and subsidy cuts take full effect. In November, key price increases were seen across various categories. Alcoholic beverages and drinks rose by 3.7%, while miscellaneous products and services climbed 2.8%. Non-alcoholic beverages and food also saw an increase of 2.4%. Other notable rises included hotel and restaurant services (1.9%), leisure and cultural activities (1.7%), education (1.7%), healthcare (1.6%), transportation (1.4%), and utilities such as water, electricity, and gas (1.1%). Additionally, maintenance of furniture and household items increased by 0.7%. On the other hand, some categories saw declines, including clothing and footwear (down 1.4%) and communication services (down 0.2%). For the first 11 months of 2010, the cumulative CPI reached 113.9, representing a 1.7% increase from the 112.0 recorded in the same period of 2009. This suggests a steady but manageable pace of inflation, supporting the outlook for continued economic stability in the coming months.