• 4 months ago
The impact of the recently implemented diesel subsidy rationalisation remains manageable given the government mitigation measures despite the slight rise in inflation prints, said Bank Negara Malaysia (BNM).

Governor Datuk Seri Abdul Rasheed Ghaffour said the measures minimise cost impact on businesses.

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Transcript
00:00It is worth highlighting that as of June 2024, the impact to inflation from higher diesel
00:12pump prices in Peninsular Malaysia has been rather limited, with little evidence of spillovers
00:18to the broader CPI prices.
00:21Notwithstanding this, inflation is expected to trend higher in the second half of the
00:26year amid the recent rationalisation of diesel subsidies.
00:31The impact would, however, remain manageable, given measures by the government to minimise
00:36the extent of cost increases.
00:39Headline and core inflation is projected to remain within our earlier forecasted ranges
00:44of 2-3.5% and 2-3% respectively.
00:48And having said that, headline inflation has remained modest at about 1.8% during the first
00:54half of the year, and we believe that it is not likely to exceed 3% for the year as
01:01a whole, bearing further shocks.
01:05Of note, the outlook remains contingent on further domestic policy measures, particularly
01:11on fuel subsidy rationalisation, as well as risks from external developments, including
01:17geopolitical tensions and climate change, which could drive up global commodity prices.
01:24For more UN videos visit www.un.org

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