Food prices, subsidies and outlook

The impact of raising the ceiling price for chickens, eggs and cooking oil on overall inflation is expected to be minimal since the weightage for these items is around 3.4% of the overall basket.But it will impact overall food inflation since it accounts for a 12.0% share.

MAY’S inflation data for Malaysia showed headline inflation rising by 2.8% while core inflation, which excludes volatile items and administered prices, increased by 2.4%.

Both the headline and core inflation have been on the uptrend since March this year, and expectations are for overall inflation to remain sticky in 2022.