By The Star
Wednesday July 9, 2008
KUALA LUMPUR: Bank Negara Malaysia expects the consumer price inflation to exceed 6% in June, following the adjustment in petrol prices by 40.6% and diesel prices by 63.3%, says Governor Tan Sri Dr Zeti Akhtar Aziz.
“While domestic inflation is expected to remain elevated for the remaining part of this year and early next year, it is expected to moderate in the second half of 2009,??? she said Wednesday.
She said the inflationary pressure was also from increase in electricity tariffs on July 1, with tariffs by up to 18% for households and an average of 26% for some commercial and industry users.
Zeti said this in her speech at the Banking Industry Seminar – Enhancing SMEs’ Awareness on Access to Financing in Kuala Lumpur.
She explained the rising international prices of energy and commodities have confronted economies globally with rising costs and intensifying inflationary pressures.
Hence, several emerging economies had to restructure their fuel subsidies in an effort to create more efficient economies and to achieve more sustainable fiscal positions.
Bank Negara Malaysia, governor Tan Sri Dr. Zeti Akhtar Aziz delivering her keynotes address on the “The ABM Banking Industry Seminar for SMEs”
On the economy, she said gross domestic product was averaging about 6% in the recent three years.
“In 2007, the economy expanded by 6.3% and has continued to register a strong growth in the first half of 2008,??? she said.
Zeti said this stronger growth has been achieved despite the more challenging external environment and increased uncertainties in the international financial markets.
For the full text of Zeti’s speech click here