Published by The Edge
Nov 24, 2008
In July and August 2008, inflation hit 8.5%, a 26-year high for Malaysia. This was triggered by the government’s decision to increase pump prices on June 4 by 78 sen to RM2.70, a 40.6% increase over the previous rise of RM1.92. Fuelled by a steady rise in crude oil price, which climbed above US$120 per barrel in May, higher oil prices have caused the prices of food and other necessities to increase sharply.
With the economic slowdown eating into household incomes, the number of people who will fall below the poverty line is expected to increase sharply.
