'CPI expected to continue downtrend'

The Consumer Price Index (CPI) is expected to continue its downtrend in the upcoming months, says a securities
firm.

JF
Apex Securities expects the downtrend to persist in coming months, even
ahead of the Ramadan month in July and Hari Raya Aidilfitri in August.

It forecasts that the CPI would decline to between 1.5 per cent and 1.4 per cent year-on-year in July.

Last
month, the CPI was at 1.6 per cent year-on-year, which was within
expectation, and also seven consecutive months of downtrend.

It
said further easing of the CPI in June was due to the 20 sen reduction
in the retail price of RON97 petrol from RM2.80 to RM2.60 a litre.

The
year-on-year inflation rate has been on a downward trend from 2.1 per
cent in March to 1.9 per cent in April and 1.7 per cent in May.

JF Apex has revised downwards its CPI forecast for Malaysia this year to 1.7 per cent from 2.7 per cent previously.

The
euro debt crisis and the fragile economic growth in the United States,
the world's biggest economy, caused further decline in commodity
prices, especially crude oil prices to below US$80 per barrel.

"This will put inflation risks at bay for the moment," it added. -- Bernama