KINIBIZMalaysian consumers are holding back purchases as rising inflation puts a strain on household finances, a survey of 1,022 households in Peninsular Malaysia by the Malaysian Institute of Economic Research (MIER) has revealed.

MIER’s Consumer Sentiment Index stood at just 82.4 points in the fourth quarter last year, well below the 100-point demarcation line, for the first time since the Global Financial Crisis almost five years ago.

From a peak of 122.9 points in the first quarter, the Consumer Sentiment Index steadily fell to end 2013 on a low note.

Household incomes have been adversely affected by climbing inflation, the survey found.

Last December, growth in the consumer price index accelerated to 3.2% year-on-year (y-o-y), Bank Negara reported. The average inflation rate for 2013 was 2.1% y-o-y.

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