KUALA LUMPUR, 31 JULAI 2023 — Headline inflation declined to 2.4% in June 2023 compared to 2.8% in May, said Bank Negara Malaysia (BNM).
According to the central bank, the moderation was largely due to lower inflation for core Consumer Price Index (CPI) components (-0.3 percentage points) and fuel (-0.1 percentage points).
“The moderation in core inflation at 3.1% in June 2023 (May 2023: 3.5%) was mainly due to lower inflation for some discretionary services, particularly food away from home,” BNM said in a statement today.
Meanwhile, exports contracted by 14.1% (May 2023: -0.9%) in June 2023 reflecting weaker external demand, a decline in commodity prices and a high base effect from 2022.
Manufactured export growth was weighed down mainly by petroleum products and palm oil-based products.
“Commodities exports declined due to lower shipments of palm oil, LNG, and crude petroleum,” the central bank said
BNM also said that credit to the private non-financial sector was broadly sustained at 3.9% in June 2023 (May 2023: 4.0%) despite the slower expansion in credit to businesses at 2.6% in June this year (May 2023: 2.8%).
Growth in outstanding business loans moderated to 1.0% in June 2023 (May 2023: 1.6%), following slower growth in working capital loans among non-SMEs.
Growth in outstanding corporate bonds, however, improved slightly to 4.9% in June 2023 (May 2023: 4.6%).
Meanwhile, BNM said that for households, outstanding loan growth was unchanged at 5.1%, with sustained growth across most loan purposes.
“Notwithstanding this, loan applications recorded slower growth, particularly for the purchase of houses and personal use, partly due to the high base effect from a strong increase in June 2022,” the central bank said.
BNM also said that global financial sentiments were weighed down by concerns over the global growth outlook due to a weaker-than-expected economic recovery in China. This was further compounded by slower economic activity in Europe and weak corporate earnings., the central bank said.
On ringgit, BNM said that the currency depreciated against the US dollar by 1.3% (regional average: -0.1%) while the FBM KLCI declined by 0.8% (regional average: -0.1%) in June.
Meanwhile, in tandem with global bond yields, the 10-year MGS yields rose by 15 bps, following indication of a tighter monetary policy stance going forward by the US Federal Reserve, the central bank added.
— Akses Malaysia
