Malaysia's June inflation rate seen easing after GST scrapped: Reuters poll

KUALA LUMPUR (Reuters) – Malaysia's annual inflation rate eased to 1.3 percent in June from 1.8 percent last month, thanks to the withdrawal of a goods and services tax (GST), a Reuters poll showed.

The 10 analysts in the Reuters poll gave estimates for June inflation ranging from 0.6 percent to 1.9 percent.

The new government led by Prime Minister Mahathir Mohamad, in the aftermath of the May 9 general election, scrapped the 6 percent consumption tax on June 1.

Economists said the removal of GST likely to dampen inflation in June, despite the Muslim fasting month of Ramadan and subsequent Eid al-Fitr celebrations.

Amid slowing inflation and steady growth, Malaysia's central bank at 3.25 percent at a policy meeting on July 11.