Inflation?
2008 inflation forecast raised to 5.8pc
MALAYSIA'S average inflation rate is expected to rise to 5.8 per cent this year from an earlier forecast of 5.5 per cent, according to Malaysian Rating Corporation Bhd (MARC).
This followed the sustained increase in global and regional inflation as well as a spike in June's consumer price index (CPI) due to the significant removal in fuel subsidy that triggered a 41 per cent and 63 per cent hike in petrol and diesel prices, respectively, it said in a statement today.
“While the CPI has risen by an average rate of 3.7 per cent in the first half of 2008, the index is expected to climb at a faster pace of 7.2 per cent in the second half of the year, giving an average of 5.5 per cent for the whole year,” the rating agency said.
MARC said the two major sub-indices that would likely put upward pressures on the overall CPI in the near term are food and non-alcoholic beverages and transport.
It expects sharp increases in the sub-indices of transport and food and non-alcoholic beverages by 19.6 per cent and 10 per cent on a year-on-year basis in the remaining part of the year as the impact of rising cost of food and fuel continues to filter through the economy.
For this year, it anticipates the two indices to chalk up average increases of 7.6 per cent and 10.8 per cent, respectively.
Meanwhile, due to higher-than-expected inflation in Malaysia and in the region as well as in major developed countries in recent months, MARC sees an increasing risk of higher Overnight Policy Rate (OPR) despite maintaining its expectation of a 3.5 per cent rate for the rest of the year at this juncture.
The caveat, however, lies in the details of the second quarter GDP growth statistics, it said.
“Should the economy continues to post a higher-than-expected growth which would lead to a continuous rise in capacity utilisation of the manufacturing sector as well as the emergence of demand-pull factors in the economy, a monetary policy response is expected in the near future,” it added. — Bernama
So what are going to happen to our civil people @ rakyat marhaen? Can we survived if the world's economy predicted to collapse in near future? Just a thought
MALAYSIA'S average inflation rate is expected to rise to 5.8 per cent this year from an earlier forecast of 5.5 per cent, according to Malaysian Rating Corporation Bhd (MARC).
This followed the sustained increase in global and regional inflation as well as a spike in June's consumer price index (CPI) due to the significant removal in fuel subsidy that triggered a 41 per cent and 63 per cent hike in petrol and diesel prices, respectively, it said in a statement today.
“While the CPI has risen by an average rate of 3.7 per cent in the first half of 2008, the index is expected to climb at a faster pace of 7.2 per cent in the second half of the year, giving an average of 5.5 per cent for the whole year,” the rating agency said.
MARC said the two major sub-indices that would likely put upward pressures on the overall CPI in the near term are food and non-alcoholic beverages and transport.
It expects sharp increases in the sub-indices of transport and food and non-alcoholic beverages by 19.6 per cent and 10 per cent on a year-on-year basis in the remaining part of the year as the impact of rising cost of food and fuel continues to filter through the economy.
For this year, it anticipates the two indices to chalk up average increases of 7.6 per cent and 10.8 per cent, respectively.
Meanwhile, due to higher-than-expected inflation in Malaysia and in the region as well as in major developed countries in recent months, MARC sees an increasing risk of higher Overnight Policy Rate (OPR) despite maintaining its expectation of a 3.5 per cent rate for the rest of the year at this juncture.
The caveat, however, lies in the details of the second quarter GDP growth statistics, it said.
“Should the economy continues to post a higher-than-expected growth which would lead to a continuous rise in capacity utilisation of the manufacturing sector as well as the emergence of demand-pull factors in the economy, a monetary policy response is expected in the near future,” it added. — Bernama
So what are going to happen to our civil people @ rakyat marhaen? Can we survived if the world's economy predicted to collapse in near future? Just a thought
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