KUALA LUMPUR, Sept 26 -- AmBank Research is projecting full-year inflation at between 0.8 per cent and 0.9 per cent in 2019 with inflation pressure expected to remain tame in the remainder of the year.
In a research note today, it said the current level of economic activity remains insufficient to spur inflation, with average headline inflation at 0.5 per cent year-on-year for the first eight months and core inflation for the same period at 1.0 per cent.
“We expect a 25 basis points (bps) overnight policy rate cut in November, given the challenges to growth on both the domestic and external fronts,” said AmBank Research.
August’s headline inflation of 1.5 per cent year-on-year fell within expectations while core inflation remained unchanged at 2.0 per cent year-on-year for the fifth straight month, it said.
While inflation was driven by food and non-alcoholic beverages, the upside to inflation was capped by the drop in transportation prices due to the drop in pump prices, it added.
-- BERNAMA