Malaysia’s consumer price index in June increased 1.6 percent from a year earlier, the fourth consecutive month in which the inflation rate has slowed, government data showed today.

The figure was below the 1.8 percent median forecast in a Reuters poll, and down from May’s 2.0 percent rise.

In June, there were higher prices for food as well as alcoholic and tobacco products, but these were offset by lower transportation costs, according to the Statistics Department.

Annual inflation reached a seven-year peak of 4.2 percent in February, but has since moderated as fuel prices have remained low and as the effects of a goods and services tax imposed in April 2015 fade.

Malaysia’s central bank last week cut its inflation projection for the year to 2-3 percent from 2.5-3.5 percent. Bank Negara Malaysia (BNM) also cut its key policy rate by 25 basis points to 3.0 percent, the first cut in seven years.

- Reuters