Re: Malaysia's inflation hits 27-year high

Bribe costs have also spiralled.
"Politikus" <ffasia@xxxxxxx> wrote in message
news:3f65a756-ffb9-49e4-8d8e-e943ad8864bf@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Malaysia's inflation hits 27-year high
See
http://edition.cnn.com/2008/BUSINESS/07/24/malaysia.inflation.ap/index.html

KUALA LUMPUR, Malaysia (AP) -- Malaysia's annual inflation rate
spiraled to a 27-year high in June after a fuel price hike sent the
cost of food and transport soaring, the government said.

Consumer prices in June rose 7.7 percent compared with the same month
in 2007, more than double the 3.8 percent annual inflation rate
recorded in May, according to data released late Wednesday by the
Statistics Department.

Food and nonalcoholic beverages, which account for 31 percent of the
price index, spiked 10 percent from a year ago. Transport expenditure
surged 19.6 percent; alcoholic beverages and tobacco costs climbed 9.2
percent.

"The main reason for this increase is due to the substantial rise in
the price of petrol and diesel announced by the government," the
statistics department said.

The inflation figures underscore growing public frustrations over the
higher cost of living after the government raised gasoline prices by
41 percent and diesel prices by 63 percent in early June to curb a
runaway subsidy bill.

Domestic Trade and Consumer Affairs Minister Shahrir Samad said June's
inflation rate was the highest since April 1981, when consumer prices
rose 10.8 percent.

Shahrir said annual inflation would likely remain above 7 percent in
July because the government raised electricity tariffs by 18 percent
for households and an average of 26 percent for commercial and
industry users.

Central Bank Governor Zeti Akhtar Aziz was noncommittal Thursday about
whether the sharper-than-expected rise in inflation will prompt the
bank to raise its key overnight policy rate -- used by banks to set
lending rates -- which has been unchanged at 3.5 percent since 2006.

"We're going to do what is in the best interest of the country," Zeti
told reporters, adding that the bank will consider factors such as
whether inflation would increase and affect economic growth.

The government has said inflation may cross 5 percent in 2008, but it
has pledged not to further raise fuel prices this year. Inflation was
around 2 percent last year.

Malaysia's consumer price index is calculated based on retail prices
of 460 items in nearly 25,000 outlets nationwide.


.

Relevant Pages

  • Smoothing Out Inflation
    ... How can inflation be so low over the past few years if we see rising energy ... showing the results of rising energy costs, ... If you take out the housing component of the ... Can you imagine the 10 year bond prices if inflation was thought to be 5.6%? ...
    (misc.invest.stocks)
  • Is Bush deaf, dumb, blind, or stupid -- or all of the above?? Consumer prices, inflation ris
    ... Living Costs Rising Fast, and Wages Are Trailing ... Prices of a wide range of common products in the Consumer Price Index ... failed to keep pace with inflation, ... Some economists have argued that as Americans cut back their spending, ...
    (alt.politics)
  • [bt] Malaysias easy money policy
    ... MALAYSIA'S central bank would do well to keep a sharp eye on inflation ... In Malaysia, as in most countries, national prices are ... KUALA LUMPUR, Malaysia - Malaysia's state-owned electric utility, ... had a tariff review for the last eight years," Che Khalib told Dow Jones ...
    (soc.culture.malaysia)
  • Malaysias inflation hits 27-year high
    ... Malaysia -- Malaysia's annual inflation rate ... cost of food and transport soaring, the government said. ... Consumer prices in June rose 7.7 percent compared with the same month ...
    (soc.culture.malaysia)
  • Re: New Inflation Data Explains Middle-Class Squeeze
    ... middle-class Americans already know: Inflation is squeezing them. ... prices is determined. ... bread rose 7.4 percent last year, almost twice the rate of inflation. ... slightly under the broader consumer inflation rate. ...
    (soc.retirement)