M'sia's inflation rate to moderate

M'sia's inflation rate to moderate

KUALA LUMPUR: Malaysia's central bank on Tuesday said the country's inflation rate will ease toward the end of the year after rising sharply in recent months.

The consumer price index, which measures inflation, "has increased to above 3 percent due to rising costs, but this is expected to moderate toward the later part of the year," Central Bank Governor Zeti Akhtar told reporters at an Islamic bankers' forum. She didn't elaborate.

Malaysia's consumer prices rose 3.1 percent in May, its highest inflation rate since it hit 3.8 percent in February 1999. That increase came after the government raised retail prices for gasoline and diesel fuel by up to 23 percent in May.

Zeti said in May that inflation was expected to edge upward over the next few months before moderating later in the year. -- AP