Higher inflation predicted

KUALA LUMPUR: The inflation rate might rise to between 2.5% and 3% in 2013 from 1.7% in 2012 as subsidy rationalisation may resume after the general election and possible spillover effects seen from the higher commodity prices, according to CIMB Investment Bank Bhd regional head of economics research Lee Heng Guie.

“I think inflation will be trending higher next year,” he said. Lee estimated inflation for 2013 to be 2.5% to 3% against the Finance Ministry's 2% to 3% at the 76th Financial Advisory Series held by CIMB Preferred.