INFLATION is likely to make a comeback in 2021 after a deflationary trend this year as the Covid-19 pandemic supressed demand for goods and services.
Economists surveyed by Bloomberg are projecting a decline of 1.5% in November in the consumer price index (CPI), which measures the inflation rate, tracking last month’s reduction by a similar rate. For the period from January to October, the CPI decreased by 1%. The Department of Statistics Malaysia is set to release the inflation data for November next Wednesday.
A more subdued inflation pattern is expected in 2021, likely around the 1.5% to 2.7% range, which would be milder than the levels seen three years ago of around 3.7%.