KUALA LUMPUR: Malaysia’s food inflation is about to keep on an upward path within the coming months amid elevated international commodity costs, home provide chain disruptions and depreciation of the ringgit.
MIDF Research stated Malaysia, as a internet food-importing nation, is very uncovered to international shocks within the food supply-chain.
‘’Global food inflation remained elevated, notably the costs of corn, grain and greens.
‘’Nevertheless, we opine general inflationary stress will remain secure as gas inflation continues to be on a downtrend,’’ it stated in an financial transient at this time.
The analysis home stated the deceleration of gas inflation will outweigh the rise in food inflation assuming the federal government maintains the present capped gas costs of RON95 petrol and diesel.
‘’In our thematic report ‘Oil Exports Rebound & Inflation Concerns’, we forecast that Malaysia’s headline inflation to keep under 3.0 per cent even when food inflation averaged at 5.0 per cent, whereas gas costs are capped at present ranges.
‘’Unless common food inflation surged to 10.0 per cent, general inflation (is anticipated) to common at 4.6 per cent,’’ it stated.
MIDF Research added that, within the worst case state of affairs, common headline inflation would rise to 8.9 per cent if the federal government opted to float gas costs and food inflation averaged at 10.0 per cent. – Bernama