Malaysia's January consumer price index (CPI) rose 1.6 percent from a year earlier, the fastest pace in nearly two years, government data showed today.

The annual inflation rate was in line with the pace forecast by economists in a Reuters poll and the fastest since May 2018 when the index increased 1.8 percent. 

In December, the rate was one percent.

Inflation in January was driven by a rise in the transport sector, which was up 3.9 percent annually due to higher fuel prices, data from the Statistics Department showed.

Prices were also up in all 12 sectors tracked by the index except for the clothing sector, which fell 1.2 percent, the data showed.

Malaysia's central bank said inflation is expected to remain modest this year, though higher than the previous year. — Reuters