Inflationary pressure expected to be manageable

PETALING JAYA: With global headwinds affecting the world economy, coupled with the disruption of shipping lanes, Malaysia as a trading nation is expected to feel the brunt of higher inflationary pressures this year.

The external headwinds which could potentially spur higher inflation are the escalation of the war between Israel and Hamas and its impact on the oil supply in the Middle East, and the avoidance of some sea routes which could impact transportation leading to higher consumer prices and food prices, particularly of staples, due to the ongoing El Nino phenomenon.