Dip in inflation may reflect slowing demand, say economists

Free Malaysia Today

They say that while low inflation helps with the cost of living, it may also signal weak consumer spending.   Read More: https://www.freemalaysiatoday.com/category/nation/2025/06/26/dip-in-inflation-may-reflect-slowing-demand-say-economists  Laporan Lanjut: https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/06/26/inflasi-turun-mungkin-petanda-permintaan-kurang-kata-pakar  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #Inflation #Israel #Iran #Conflict

Transcript

00:00Economists say the low inflation rate recorded for the country last month may reflect subdued

00:07consumer demand which could threaten economic growth. On Tuesday, it was reported that Malaysia's

00:13inflation rate stood at 1.2% in May, down from 1.4% the previous month, driven by falling global

00:20oil prices. Ahmad Razman Abdul Latif of Pucha Business School said a low inflation rate might

00:26reflect weakening market demand, meaning that consumers are no longer spending as much as

00:31before. AMBank chief economist Firdaus Rosely said the low inflation rate contrasts with April's low

00:38unemployment rate of 3.0%, indicating that despite a tight labor market, consumers remain cautious and

00:45are spending less amid uncertainty. Sunway University economist Ye Kim Leng said a low inflation rate is

00:52positive if driven by declining supply costs, but concerning if caused by falling demand and reduced

00:58consumer spending. Ye said while a low inflation rate would help with the cost of living and give

01:03the government room to adjust its policies, the recent increases in global crude oil prices could

01:10push inflation up in the coming months. Barjoyaibardai of Malaysia University of Science and Technology

01:16said May's inflation data does not reflect recent geopolitical tensions. He warned that the Israel-Iran

01:23conflict could push food prices higher, with the real impact likely to be seen in June.

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