The Consumer Price Index (CPI) or the inflation rate jumped sharply 7.7%, doubled from may CPI of 3.8% and a 27 seven year record high, higher than market forecast of 6.74%. I expect the inflation is expected to remain high in July and probably the rest of the year. In July further increase in the electricity tariff will continue push the index at the current level.
Previously our CPI is just recording below 3.8% while other countries are already in the 6-11% hike. In June; China (7.1%), Singapore (7.5%), Hong Kong (6.1%), Philippines (11.4%), Thailand (8.9%), Indonesia (11%).
Crude Oil prices last night drop to USD124 per barrel after recording the high of USD147 per barrel last week. Malaysia hiked the petrol and diesel price when the Oil prices was trading at USD136 per barrel.
Tomorrow Bank Negara Malaysia (BNM) will hold a monthly monetary meeting and market are expecting a review on the interest rates. Will BNM increase the interest rates from currently at 3.5% to 3.75%? However, the current inflation is not due to supply-demand factor but more of cost push factor.
Will we suffer as much as in 1998?
Previously our CPI is just recording below 3.8% while other countries are already in the 6-11% hike. In June; China (7.1%), Singapore (7.5%), Hong Kong (6.1%), Philippines (11.4%), Thailand (8.9%), Indonesia (11%).
Crude Oil prices last night drop to USD124 per barrel after recording the high of USD147 per barrel last week. Malaysia hiked the petrol and diesel price when the Oil prices was trading at USD136 per barrel.
Tomorrow Bank Negara Malaysia (BNM) will hold a monthly monetary meeting and market are expecting a review on the interest rates. Will BNM increase the interest rates from currently at 3.5% to 3.75%? However, the current inflation is not due to supply-demand factor but more of cost push factor.
Will we suffer as much as in 1998?
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