Inflation in Malaysia: low and manageable.
Reuters reports that Malaysian inflation has “hit a 13-month high,” which sounds alarming till the revelation that the high is all of 2.8 percent. By comparison, U.S. inflation in March was 3.98 percent, and apparently peaked in November at 4.31 percent. The present U.K. inflation rate is only slightly lower, at 2.5 percent; and recent reports put inflation in the Euro zone at 3.3 percent. Malaysia therefore meets and usually beats the inflation standards set by the major economic powers. If, as Milton Friedman said in 1963, “Inflation is always and everywhere a monetary phenomenon,” then the lesson is clear — Malaysia’s monetary fundamentals are sound. Good news indeed for American businesses seeking a safe and stable venue for investment.
