By Deborah Loh , New Straits Times
June 19, 2008
PUTRAJAYA: A government motion to debate inflation will be tabled in Parliament on Monday.
Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said the motion would call for a debate on the increase in prices for “everything”.
“The government is tabling the motion but I don’t know who is tabling it,” he said yesterday.
Asked if he meant a Barisan Nasional backbencher would table the motion to debate inflation, Sharir said: “The government will table it, it will be debated and we’ll answer the motion during the debate as well.”
He was speaking to reporters after announcing the Consumer Price Index for May.
Higher food prices drove up the CPI by 2.9 per cent for January to May this year compared with the same period last year.
The CPI for May this year increased 3.8 per cent.
Shahrir said the index was projected to increase for June due to higher petrol and diesel prices, but did not expect it to be a double-digit increase.
He said the food and non-alcoholic beverages group formed 89 per cent of the CPI increase in May.
“The contribution from this group is the largest. Some of the items in this group are Super Rice 5 per cent both local and imported, rice flour, fragrant Siamese rice, beehoon, and a plate of white rice,” Shahrir said.
Shahrir said the effects of the fuel hike would be the main factor.
“It depends on the component of transportation in the overall CPI index. The weight given to transportation is 15.9 per cent of the index. It’s quite significant and will certainly have an impact on the overall CPI.”
Transportation is the third largest group in the index, after food and non-alcoholic beverages which comprise 31.4 of the CPI’s weight, while housing, water, electricity, gas and other fuels make up 21.4 per cent.
These three groups together accounted for 73.6 per cent of the overall CPI increases between this year’s January to May period compared with the same period last year.
All main groups in the index recorded in an increase, except for clothing and footwear, and communication, which both registered a decline of 0.6 per cent for January to May this year compared with a year ago.
Shahrir said the ministry was considering listing powdered “growing-up” milk as a price-controlled item.
However, infant formula would not be made a controlled item to promote breastfeeding.
The ministry is also advocating the import of processed chicken in order to lift the ceiling price on local chicken.
Shahrir said his officers would discuss chicken imports with the Veterinary Services Department before a decision was made.