Higher fuel prices unlikely to cause inflation

THE increase in fuel prices from today is not expected to cause inflation although it would exert some pressure on general price levels in the coming months, said CIMB Bhd chief economist Lee Heng Guie. 

“The impact will be mild on the economy,” Lee said, adding that there were a number of mitigating factors such as the price control mechanism for goods and services, including transport as in the case of bus fares.