Malaysia inflation picks up in August, slightly above forecast

Pedestrians crossing a street outside the Pavilion Mall shopping centre in downtown Kuala Lumpur, Malaysia on March 17, 2013.
Pedestrians crossing a street outside the Pavilion Mall shopping centre in downtown Kuala Lumpur, Malaysia on March 17, 2013.PHOTO: BLOOMBERG

KUALA LUMPUR (REUTERS) - Malaysia's consumer price index in August edged up to 3.1 per cent from a year earlier due to sustained price increases in household expenses despite lower fuel costs, data showed on Wednesday (Sept 23).

Inflation in August was slightly above a 3.0 per cent median forecast by economists in a Reuters poll, but less than 3.3 per cent in July.

Inflation has picked up considerably since a 6 per cent consumption tax went into effect in April, but economists expect prices to moderate as fuel costs remain low and the festive season of Eid al-Fitr ended in mid-August.