KUALA LUMPUR, April 20 (Xinhua) -- Economists are warning that Malaysia could face broader inflationary pressures in the coming months as the unresolved Middle East conflict keeps global oil prices elevated, with overall prices likely to pick up beyond recent energy-driven spikes.
Maybank Investment Bank expects Malaysia's full-year inflation rate to average 2 percent and 2.5 percent in 2026 and 2027 respectively, versus 1.8 percent and 2.1 percent previously.
"The inflation outlook reflects upside risks to inflation following the Middle East conflict's impact on key energy and commodity prices as well as transport costs (e.g., aviation, freight), although firmer Ringgit and continuation of fuel subsidies provide some cushion," the research house said in a note on Monday.
It estimated a sustained 10 percent increase in global crude oil prices could raise Malaysia's inflation by approximately 0.2 percentage points.
Hong Leong Investment Bank Research also said that Malaysia's March consumer price index print captured the immediate transmission of the energy supply shock inflicted by the ongoing Middle East conflict.
"A prolonged conflict could trigger spill-over effects and broaden inflationary pressures across the CPI basket, primarily through elevated fuel, food and input costs," the research house said in a note on Monday.
Malaysia's headline inflation accelerated to 1.7 percent year on year in March, as higher inflation was seen across transport and information & communication, personal care, insurance & financial services, restaurants & hotels, as well as housing, utilities & other fuels.
The country's inflation for the first quarter also increased to 1.6 percent as compared to 1.3 percent in the fourth quarter of 2025, official data showed last Friday. ■
