Malaysian consumer prices dipped slightly in October, running at 3.1 percent from the same period a year ago, according to official data released today.

Inflation in September was at 3.3 percent year-on-year.

Month-on-month, the consumer price index (CPI) in October was unchanged from September.

For the 10 months to October, inflation was 3.7 percent compared to the same period last year, with increases in all the main indices except clothing and footwear, and communications, the department said.

The moderation in the consumer price index was in line with projections by the central bank for the second half of the year.

Inflation struck 4.8 percent in March, the highest level in six years, after the government introduced steep hikes in fuel prices in February.

It eased back to 4.6 percent in April and to 3.9 percent in May, and held steady at the same level in June.

Malaysia's central bank in August kept its benchmark interest rate unchanged at 3.5 percent for a third straight meeting, citing an easing in inflation.

Malaysia's central bank may cut interest rates next year if inflation eases and economic growth slows as expected, Malaysian Institute of Economic Research (MIER), the nation's leading economic think tank said recently.