This is the third time newsflash saying inflation is at 27 years high. It was at 7.7 % in June, 8.5% in July (but revised to 8.3%) and its 8.5% in August.
The continuous high rates is due to cost of food and fuel. The official report says the cost of food and non-alcoholic drinks rose 11.7 percent in August compared to a year ago.
“The increase (in inflation for August) was shown in the selected main groups, namely food and non-alcoholic,” it said in a statement.
The August data showed escalating prices in most categories, including transport which jumped 21.8 percent, and restaurants and hotels which rose 6.5 percent.
After releasing August’s Consumer Price Index (CPI), Domestic Trade and Consumer Affairs Minister Shahrir Samad said he does not expect September’s inflation to be much lower.
“Although, the full effects of the petrol price reductions in August and now have not been fully factored in yet, September CPI may not be much lower.
“The lower petrol prices is expected to be offset by the increase spending during Hari Raya holidays and the 30 percent surcharge on public transportation,” said Shahrir.
But the minister does expect the CPI to have peaked.
On a positive note, Shahrir said that inflation seems to have stabilised as the month-to-month increase was only 0.2 percent. However, overall inflation for the year is expected to hover around 4.8 percent.
We can expect the high inflation rate to continue. Its no more at 2,3 or 4 percent levels. In other words, don’t expect the price of goods and services to go down even if fuel prices decrease.