PREVIEW-Malaysia Feb inflation seen at 9-mth high of 1.4 pct y/y

WHAT: Malaysia's Feb inflation index

WHEN: Wednesday, March 17, 0900 GMT



REUTERS FORECAST:

- Median +1.4 pct yr on yr vs +1.3 pct in January, the highest since May 2009. Forecast range of 11 economists was 1.2 pct to 1.5 pct.


FACTORS TO WATCH: Inflation is forecast to have reached an annual 1.4 percent in February, a slight acceleration from January, and the second month of positive numbers. Economists expect inflation to stay below 3 percent for 2010, signifying that inflationary pressures are not a near-term concern. Delays by the government in raising power prices and cutting fuel subsidies add to the likelihood of inflation remaining benign.



MARKET IMPACT: Markets are unlikely to move. After a 25 basis point rate hike on March 4, the central bank is expected hike interest rates further to avert 'financial imbalances' and not due to inflationary pressures. The central bank next meets to set monetary policy on May 13.

Forecasts:

February CPI

(pct change vs yr ago)

TA Securities 1.2

Action Economics 1.3

Kenanga 1.3

Bank Islam 1.3

Barclays 1.3

Standard Chartered 1.4

DBS 1.4

IdeaGlobal 1.4

Citibank 1.4

HSBC 1.4

Affin Securities 1.5

Median1.4
(Reporting by Royce Cheah; Editing by Jan Dahinten) Keywords: MALAYSIA ECONOMY/INFLATION ([e-mail]; [phone]; Reuters Messaging; [e-mail]; bureau email: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.