KUALA LUMPUR, April 17 -- Malaysia's relatively low inflation environment is expected to help the country weather the current energy supply shock, even as global oil prices are projected to remain higher for longer amid the ongoing war in West Asia, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.

He said the central bank is projecting headline inflation to average between 1.5 per cent and 2.5 per cent in 2026, noting that the present situation reflects a supply-driven shock, with developments in global energy markets beginning to feed into domestic price dynamics.

"Certainly, what we are facing right now is really a supply shock, and it is good to see how this fits into our domestic prices," he told CNBC in a...