KUALA LUMPUR, Aug 11 (AFP): Malaysia's inflation rate, which spiked to a 26-year high in June of 7.7 per cent, will moderate in the second half of 2009 as economic growth is likely to slow down, the central bank said today.
Bank Negara governor Zeti Akhtar Aziz said the recent high inflation rate was part of "first-round effects" caused by a 41-per cent fuel price hike, which has also seen prices of goods and services increase.
"The moderation in growth ... will have some dampening effect on inflation and in the current environment we have seen commodity prices retracking," Zeti said according to the state news agency Bernama.
"As a result, this will also have less impact on domestic inflation," she said.
"What we have to monitor is the second-round effects, and with the moderation in growth, we expect that inflation will moderate next year, particularly in the second half of the year," Zeti said.
Malaysia's inflation rate to moderate in 2009
FE Team | Published: August 12, 2008 00:00:00 | Updated: February 01, 2018 00:00:00
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