RAM: GST may push inflation up to 4% from 3.5% target this year

PETALING JAYA: Malaysia’s inflation rate could jump to between 3.8% and 4% next year as GST takes effect, up from a projected 3.5% this year, according to RAM Ratings.

This could be aggravated by another round of fuel-price increases and electricity-tariff adjustments, as well as a 25 basis points hike in the overnight policy rate to 3.5% ahead of the new tax regime in April, the ratings agency said.