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

According to data released by the Malaysian Statistics Department, the Consumer Price Index (CPI) for November 2010 reached 115.0, marking a 2.0% rise compared to the same period in 2009 (112.8). This was slightly below the market’s expected increase of 2.1%. The modest rise reflects ongoing inflationary pressures, but it remains relatively contained. Malaysian economists attribute the price hikes to several factors, including rising global commodity prices, increased costs for alcoholic beverages and other goods, and the government's decision to reduce subsidies on fuel, liquefied natural gas, and white sugar. These measures have contributed to higher prices for pre-packaged products, signaling a gradual rise in inflationary pressure across the economy. Despite this, inflation remains under control, and analysts expect the central bank to maintain its current monetary policy. It is likely that the overnight deposit rate will remain unchanged at 2.75% for the rest of the year. Looking ahead, Malaysia’s economic growth is expected to continue, with inflation projected to climb to around 3.4% by the end of next year as raw material costs and subsidy cuts take full effect. In November, major price increases were seen in alcoholic beverages and drinks (up 3.7%), miscellaneous goods and services (up 2.8%), and non-alcoholic beverages and food (up 2.4%). Other sectors also saw price rises, such as hotels and restaurants (up 1.9%), leisure and cultural services (up 1.7%), education (up 1.7%), healthcare (up 1.6%), transportation (up 1.4%), and utilities like water, electricity, and gas (up 1.1%). Household maintenance and daily essentials also saw small increases, up by 0.7%. On the flip side, some categories experienced declines, including clothing and footwear (down 1.4%) and communications (down 0.2%). For the first 11 months of 2010, the cumulative CPI stood at 113.9, reflecting a 1.7% increase from 112.0 recorded during the same period in 2009. This suggests a steady, albeit moderate, upward trend in consumer prices throughout the year.