Fasten your seatbelts, inflation is here

Why is rate of inflation accelerating? For example, just looking at the Brent crude oil price and retail pump prices in the second quarter of of 2020 and this year, prices of Brent crude have almost doubled while RON95 presently retails at RM2.05 per litre, although capped, is almost 50% higher than a year ago.

THE Malaysia Consumer Price Index (CPI) for the month of March was a surprise as the headline 1.7% reading was ahead of market forecast of 1.6% jump.

As we are now into the 2Q period, it is likely that inflation reading will be elevated as Bank Negara Malaysia (BNM) itself has highlighted this fact.