PETALING JAYA: Headline inflation, which grew by an average of 2.3% year-on-year (y-o-y) in the first eight months, is unlikely to hover above 3% by year-end. Despite cost pressures with the gradual reopening of the economy, analysts and economists said the inflation rate would unlikely go above the 3% mark. Kenanga Research said it has revised its 2021 headline inflation forecast up to 2.3% from 1.8% previously amid the economy’s phased reopening. Headline inflation grew by an average of 2.3% y-o-y in the first eight months of the year. “We foresee inflation rate to be more moderate as the lower-than-expected domestic spending and subdued underlying price pressures would result in lower inflation.
