Subscribe in a reader | Subscribe by Email Wow…this is of course expected, but to actually read about is scary and depressing. Those in banking industry are lucky to get 17% raise, plus 2 months contractual bonus. But there are many more people who will be affected. Government may have reduced the subsidy for petrol, but expenditure for welfare and other sector is increasing – poor people, education, diesel subsidy, agriculture subsidy, etc. In the end, the effect will be same. Previously, money spent on petrol, and the rakyat can go around working hard to make more money and help economy. Now, the rakyat have to pay more for petrol and practically everything else, while government have to prop the economy by providing aid to various groups, businesses and sectors.
Inflation is expected to at 7-8%, but in reality maybe double of that.
Anyone’s salary doubled recently? Or is it possible to reduce expenses by nearly 40-50%?
PETALING JAYA: The consumer price index (CPI) for May rose to a 22-month high of 3.8% year-on-year and economists expect the CPI for June to almost double.
JP Morgan Equity Research said core inflation, excluding food and transportation, had increased only slightly, while the main factor for the surge in the CPI was higher food prices.
However, it described the May CPI as “the calm before the storm” as it expected the June CPI to likely come close to doubling.
Factors driving the increase would be the recent rise in fuel prices after the Government raised the prices of petrol and diesel by 41% and 63% respectively, said JP Morgan.
Aseambankers Equity Research expected Malaysia’s monthly inflation rate to surge to 7.5% and 8% year-on-year in the June to December period, due to the higher fuel price and gas and electricity tariff hikes.
On the May inflation, it said the inflationary pressure was exacerbated by lack of enforcement by the authorities. It cited complaints by the public that controlled essential items like local super grade rice and flour were either not available or sold above their ceiling prices.
– The Star
