Malaysian Central Bank Governor Says Current Increasing Inflationary Pressure Is Global Phenomenon
RTTNews
June 04, 2008
(RTTNews) - The current increasing inflationary pressures due to rising international energy and commodity prices is a global phenomenon, the Bank Negara Malaysia's governor Zeti Akhtar Aziz said Thursday.
Speaking at the 12th Malaysian Banking Summit, the central bank governor said domestic inflation in Malaysia has increased to 3% in April 2008 from less than 1% recorded in April 2004 primarily due to higher food and energy prices.
Worsening the condition, Malaysia increased petrol prices by 78 sen to RM2.70 per litre, while diesel prices hiked by RM1 to RM2.58 per litre on Wednesday. Hikes will be effective from June 5.
On this ground, governor said "The Bank's preliminary assessment of the impact of the rationalization of the domestic fuel and energy prices on inflation in 2008, is that it will rise to an average of 4.2% for the year." She added that the initial price impact would be felt in June during which inflation is expected to be in the region of 5%. Further, she said the increases in prices are expected to peak in the first quarter of 2009 before moderating to less than 3% in the fourth quarter.
As international prices of commodities are expected to continue to remain high and as direct influence over prices is limited the central bank governor noted, "Efforts will have to be focused on increasing efficiency and productivity to reduce cost and to shift resources to areas of comparative advantage."
RTTNews
June 04, 2008
(RTTNews) - The current increasing inflationary pressures due to rising international energy and commodity prices is a global phenomenon, the Bank Negara Malaysia's governor Zeti Akhtar Aziz said Thursday.
Speaking at the 12th Malaysian Banking Summit, the central bank governor said domestic inflation in Malaysia has increased to 3% in April 2008 from less than 1% recorded in April 2004 primarily due to higher food and energy prices.
Worsening the condition, Malaysia increased petrol prices by 78 sen to RM2.70 per litre, while diesel prices hiked by RM1 to RM2.58 per litre on Wednesday. Hikes will be effective from June 5.
On this ground, governor said "The Bank's preliminary assessment of the impact of the rationalization of the domestic fuel and energy prices on inflation in 2008, is that it will rise to an average of 4.2% for the year." She added that the initial price impact would be felt in June during which inflation is expected to be in the region of 5%. Further, she said the increases in prices are expected to peak in the first quarter of 2009 before moderating to less than 3% in the fourth quarter.
As international prices of commodities are expected to continue to remain high and as direct influence over prices is limited the central bank governor noted, "Efforts will have to be focused on increasing efficiency and productivity to reduce cost and to shift resources to areas of comparative advantage."
