I am far from an expert on economic matters. It does impact our commodity prices, equity prices, etc.
A moderate inflation level at ~2 to 3% is healthy or normal based on statistical data, to drive economic consumption and is crucial for economic growth. However, the sudden drop in inflation below <2% indicates a financial crisis of some sort which is opposite to inflation is deflation.
Deflation can be seen as a bad sign for the economy that may lead to ballooning debt which is dangerous for a country. Malaysia’s…
