New ceiling prices for chicken, eggs to help curb big rise in food inflation


KUALA LUMPUR: The move to set new ceiling prices for chicken and eggs will help to limit potentially larger adjustment that would add to the overall food inflation, according to MIDF Research.

"For example, the new ceiling price for chicken at RM9.40 per kilogramme (kg) for Peninsular Malaysia is only an increase of 5.6 per cent from the previous ceiling of RM8.90 per kg.

"So, this is smaller than the expected increase to around RM10 to RM12 per kg if chicken prices were to be floated,” it said in a note today.

READ ALSO: New chicken ceiling price is RM9.40 per kg

MIDF Research said the approval given to the Farmers’ Organisation Authority to bring over 4,500 tonnes of chicken from Thailand is expected to stabilise chicken supply in the domestic market and would limit upward pressure on chicken prices for now.

"Going forward, we foresee that the government will continue to explore more initiatives to ease the upward pressures on food prices in the longer run,” it said.

On the inflation outlook, the research house forecast the Consumer Price Index inflation will be at 2.8 per cent in 2022, higher than last year’s 2.5 per cent, taking into account the faster food inflation and continued improvement in domestic spending activity this year.

READ ALSO: Why is chicken so expensive? Here’s what you need to know.

Yesterday, the Cabinet decided to continue providing subsidy for chicken and not to float its price, capping the retail price of standard chicken at RM9.40 per kg in Peninsular Malaysia effective July 1.

Furthermore, the Cabinet also agreed to fix the retail ceiling price of grade A chicken eggs at 45 sen each, grade B eggs at 43 sen each, and grade C eggs at 41 sen each in Peninsular Malaysia, also effective July 1. - Bernama

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

MIDF Research , Chicken price , CPI , Inflation , Food , Subsidy

   

Next In Business News

Wide-body jet demand humming again as Boeing 787 rejoins the fray
Oil price falls 2% on expectations that US Gulf supply disruption will ease
GLOBAL MARKETS-Global stocks rise, U.S. yields fall as inflation slows
NYT targeted by activist investor pushing for subscriber-only bundles
‘Hopeless’: Chinese homebuyers run out of patience with developers
Steady retail outlook
From high-flying restaurateur to investor
Asia Foundation in MSME partnership with DHL
Building Malaysia’s first unified halal ecosystem
Economy expected to grow 6.4% this year

Others Also Read