Inflation in Malaysia for August 2022 just got released, 4.7% YoY This is the highest in 16 months, and starting to creep up to levels not seen since the energy and commodity crisis in 2008 A quick little thread from a finance nerd 1/n

@DOSM released Malaysia's August 2022 CPI numbers, but strangely the headline they put January - August 2022 at 3.1% rather than the usual format Aug 2022 at 4.7% YoY. They did it last month for July 2022's when it was 4.4% YoY. From this ---------------> to this 2/n

So it's a little confusing, they should probably try to be consistent, but at least the numbers are accurate and all there. Inflation at 4.7% , but as always, digging deeper finds: - Food 7.2% - Restaurants & hotels 6.4% - Transport 5.2% Things we buy everyday. 3/n

I did predict inflation to remain high till October due to the base effect (last year had slight dips in CPI in Q3), so we have to hang in there for a few more months. What's next though? 4/n https://x.com/ooihann/status/1564137990888140800…

Given - 'strong' Q2 GDP at 8.9% - sustained high inflation at >4%, and - weakening RM due to other central banks upping rates too. USDMYR = 4.57 So BNM are 'locked-in' to a 5th increase in 2022, at the meeting on 2-3 Nov. How much? Probably another +25bps to 2.75%. 5/n

Remember, +25 bps is an extra ~RM35 / month for each RM250,000 of floating loan principal. So: + RM35 / month if your loan principal is RM250,000 + RM70 / month if your loan principal is RM500,000 etc https://x.com/ooihann/status/1524307494729703424… 6/n

Folks who have read my tweets for the past 6 months have already been prepped for this! So if you liked this thread, do follow me @Hann Liew, CFP, CFA, I'm a finance nerd who tweets 1-2x per week on Malaysia's numbers and how it affects your money. https://x.com/ooihann/status/1524307494729703424… n/n