Overall inflation recorded a smaller negative rate of -1.4% in the third quarter of 2020, due mainly to higher domestic fuel prices, in line with the recovery in world oil prices.
Bank Negara Malaysia (BNM) in a statement today said core inflation had moderated slightly to 1.0%.
"The average overall inflation is projected to be higher in 2021, reflecting mainly the world oil prices which are projected to increase and the lapse of the impact of the elevated electricity tariff rebate in 2020," he was quoted as saying by Bernama.
Basic inflation is expected to remain low due to overcapacity in the economy.
BNM said the outlook for inflation and the trajectory would depend mainly on the development of world oil and commodity prices.
