Inflation Rate in Malaysia

This statistic shows the average inflation rate in Malaysia from 2012 to 2017, with projections up to
2022. In 2017, the average inflation rate in Malaysia amounted to about 3.8 percent compared to the previous
year. The inflation rate is the annual rate of increase of a price index, normally the consumer price index over
time. If the same item bought today for 1 U.S. dollar is bought again one year from now, but for 1.03 U.S.
dollars, then the inflation rate is at 3 percent. Generally, a low inflation rate is sought by every country, and a
rate of 3 percent, as is estimated for Malaysia in the next few years, is considered low. However, there was a
slight rise in Malaysia’s inflation rate, from close to 2 percent in 2010 to a little over 3 percent in 2011.
In 2012, it dropped back down to its normal rate, but future estimates predict a slight increase once
again. Perhaps this increase has come from initial worries concerning the country’s slowing economy as the
country’s GDP growth slowed from 7.43 percent in 2010 to 5.19 percent in 2011, or its negative budget
balance in relation to GDP which was at its recent worst in 2010 at -4.66 percent. At the same time, the
country’s national debt was also rising, but predictions show that this trend is reversing. Yet, the economic
outlook and inflation rate still appear stable for the future of Malaysia, and the inflation rate is below
the global inflation rate. Furthermore, the country’s GDP continues to rise and totaled 326.93 billion U.S.
dollars in 2013.