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Hann Liew, CFP, CFA

@ooihann

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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 twitter.com/ooihann/status…

Hann Liew, CFP, CFA

@ooihann

Aug 29View on Twitter

Prices of most frequently bought things are going up the most, that's partly why we 'feel' inflation to be higher than the quoted number of 4.4%. So how, what's my prediction? Inflation will stay at >4% until Oct 22 when the base effect goes. theedgemarkets.com/article/malays… 6/n

Malaysia’s inflation, as measured by the consumer price index (CPI), increased 4.4% year-on-year (y-o-y) in July 2022 as the CPI's food and non-alcoholic beverage component remained as the main...

theedgemarkets.com/article/malays…

Malaysia's July 2022 inflation accelerates to 4.4% y-o-y

Malaysia’s inflation, as measured by the consumer price index (CPI), increased 4.4% year-on-year (y-o-y) in July 2022 as the CPI's food and non-alcoholic beverage component remained as the main...

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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 twitter.com/ooihann/status… 6/n

Everyone with floating rate home loans should buckle up (or down) for the next 6 months! 25bps is about RM35/month more for every RM250k principal. I would prep for another 3-5 of these increases till the rest of the year.

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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. twitter.com/ooihann/status… n/n

Everyone with floating rate home loans should buckle up (or down) for the next 6 months! 25bps is about RM35/month more for every RM250k principal. I would prep for another 3-5 of these increases till the rest of the year.

Show this thread

Hann Liew, CFP, CFA

@ooihann

Fintech Entrepreneur (Founder & ex-CEO, @RinggitPlus) & Investor based in KL 🇲🇾. Also a finance nerd trying to make finance & stats easy for Malaysians.

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