Rising inflation has risks but may help curb debt

INFLATION in Malaysia, which has risen to an eight-year high on fuel costs, may spiral into second-round price effects, but may also help control high levels of debt.

“Typically in the past, there could be second-round effects if the economy is above potential and there are demand pressures,” Bank Negara director of economics, Fraziali Ismail, was quoted as saying in a Bloomberg interview.