Inflation in Malaysia still manageable thanks to subsidies - economist


Inflation as we know it is the rapid, continuing rise in prices, which arbitrarily takes wealth away from savers, and devalue the value of income earned. It’s not just the purchasing power of money that is eroded; it is the trust in a reliable future on which promises and contracts in a capitalist society depend

KUALA LUMPUR: Malaysia is one of the Asean countries with low inflation rate which is manageable compared with other parts of the world such as the United States, which rose to new peak of 9.1 per cent in June 2022 and Turkiye which rose to nearly 80 per cent last month.

Former Alliance Bank Malaysia Bhd chief economist Manokaran Mottain said the basket of goods used to measure inflation includes controlled items which helped in bringing down the inflation rate, thanks to the subsidies provided by the government, especially for fuel and food in Malaysia.

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