Finance

Malaysia's April consumer prices rise 4.4% y-o-y, below forecast

Malaysia's April consumer prices rise 4.4% y-o-y, below forecast

'We believe inflation is likely to get up to 3% later this year and then hover around this level for a while, although we have trimmed the expected peak in inflation from 3.3% due to a recent firming in sterling and some softening in oil prices'. Inflationary pressures in the United Kingdom have risen sharply following the pound's dramatic depreciation after last June's shock Brexit vote. This meant that wages adjusted for inflation actually dropped by 0.2 percent in the first three months, the first fall since the third quarter of 2014.

An earlier government statement claimed March data pointed to an "annual house price increase of 4.1 percent which takes the average property value in the U.K.to £215,847 ($278,000)".

But the steady rise in inflation since then, combined with weak wage growth, has slowed its momentum this year.

Annual inflation in the United Kingdom stood at 2.7% in April, the fastest rate of price growth in over three years, overshooting the Bank of England's 2% target for the third consecutive month.

Rural CPI stood at 3.02 per cent and the urban CPI was at 3.03 per cent in April 2017 while retail inflation jumped to a five-month high at 3.81 per cent in March.

Food and beverage inflation fell to 1.21 per cent in April compared to 2.5 per cent in March.

Volvo Cars to stop developing new diesel engines
Samuelsson further added, "We have to recognise that Tesla has managed to offer such a vehicle for which people are lining up". Some 90 percent of XC90s sold in Europe are diesels, but that sounds like it's going to change in the future.

Average weekly earnings including bonuses, meanwhile, climbed 2.4% in the first quarter, in line with forecast and slightly higher than the 2.3% gain recorded in the previous month.

The think tank expects the unemployment rate to rise from 4.8% at the end of this year to 5.4% in 2018 and 5.8% in 2019.

Inflation rate slumped to 17.24 per cent in April from the 17.26 per cent recorded in March.

The downward pressure on the cost of living came from fuel pump prices, with petrol falling by 1.8p to 117.4p a litre and diesel also dropping by 1.8p to 120.3p. "But rising prices are hammering pay packets", Trades Union Congress General Secretary Frances O'Grady said.

Many economists say the impact of the fall in sterling on consumer prices will be felt more strongly in the coming months, and the central bank expects inflation to peak at almost 3 percent by the end of this year.

The "All Items Less Farm Produce" or Core sub-index, which excludes the prices of volatile agricultural produce eased by 14.80 percent during the month, 0.60 percent points from 15.40 percent recorded in March as all key divisions which contributes to the index increased.