Justice For All Malaysia

Inflation jumps to 27-year high

Posted on: September 25, 2008

Inflation jumps to 27-year high
Sep 24, 08 5:16pm
The inflation rate has jumped to a 27-year high of 8.5 percent in August, driven by the escalating cost of food and fuel, according to official data released today.

MCPX

“The result was slightly higher than expected but the central Bank Negara would not raise interest rates to ensure growth,” said Wan Suhaimi Saidi, an economist with Kenanga Investment Bank.

“It is slightly above my expectation. I was looking at 8.4 percent. I don’t think the government will increase the key interest rates. It will be maintained at 3.50 percent till the year-end to support growth,” he told AFP.

The Department of Statistics revised downwards the inflation figure for July to 8.3 percent. It had earlier stated that the figure was 8.5 percent.

It said the cost of food and non-alcoholic drinks rose 11.7 percent in August compared to a year ago. The high inflation is already hurting consumers with many Malaysians cutting down on their food bill.

“The increase (in inflation for August) was shown in the selected main groups, namely food and non-alcoholic,” it said in a statement.

Escalating food, transport prices

The August data showed escalating prices in most categories, including transport which jumped 21.8 percent, and restaurants and hotels which rose 6.5 percent.

The government hiked the fuel price by 41 percent in June, in a move to rein in the ballooning cost of subsidies but it has indicated prices could be lowered soon.

High inflation was one of the factors that led to an unprecedented humiliation at March general elections for the ruling coalition, which lost five states and a third of parliamentary seats.

Bank Negara has said it expects inflation to moderate in the second half of 2008 as economic growth is likely to slow down.

Shahrir: Inflation to remain high

After releasing August’s Consumer Price Index (CPI), Domestic Trade and Consumer Affairs Minister Shahrir Samad said he does not expect September’s inflation to be much lower.

“Although, the full effects of the petrol price reductions in August and now have not been fully factored in yet, September CPI may not be much lower.

“The lower petrol prices is expected to be offset by the increase spending during Hari Raya holidays and the 30 percent surcharge on public transportation,” said Shahrir.

But the minister does expect the CPI to have peaked.

On a positive note, Shahrir said that inflation seems to have stabilised as the month-to-month increase was only 0.2 percent. However, overall inflation for the year is expected to hover around 4.8 percent.

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Must Attend Program

Please go to this link: https://justice4allkuantan.wordpress.com/2008/10/25/invitation-public-forum-the-isa-and-the-police-reform-process-whats-next-after-pak-lah/
To sin by silence when we should protest makes cowards of people - Emily Cox

Siphoning EPF money

On 'Why should Valuecap borrow from EPF?' Syed Shahir Syed Mohamud: MTUC condemns the government's move to bail out Valuecap to support the local stock market using RM5 billion from EPF, as the provident fund is the custodian of the workers' money and not some sort of ‘automated teller machine' for the government.
If at all the EPF were to lend its money to the government, it has to be under the condition that there be transparency and accountability in the activities for which the money has been purposed. We want to know who is doing what with the money that belongs to the workers. This is the hard-earned money of the workers, their retirement plan. How is this bailout plan going to benefit the workers? We also question the reason for this bailout. If the economic fundamentals in Malaysia are strong and reserves sufficient as has been stated several times by the government, then why is there a need to offer so much money to the GLCs? Second Finance Minister Nor Mohamed Yakcop should prove how the EPF would profit from this loan. Bernama had reported that Nor had given the assurance that the loan given out by EPF would reap profits for the fund judging from Valuecap's past performance. But where is the paperwork and calculations to show that this move will benefit the EPF? MTUC is concerned that the loan might be mismanaged or misused and this, in turn, would affect the returns for the contributors. Mere assurances are not enough. We want to proof that this RM5 billion will not go down the drain. (The writer is president, MTUC). Sharyn: The government wants to use our pension money to prop up the Malaysian stock market which is the playing field of the rich people. If so, the government must ensure that the EPF account holders - who are predominantly the poor to average citizens of Malaysia - be guaranteed all of our pension money with a compound 8% growth (interest). It's so selfish and sick of the government to use the poor's pension money to help the rich to make more money with all the risks taken by the poor/average citizen. We can better use the RM% billion loans to Valuecap for our children's education, shelter, medical bills etc. Why not get those rich people to prop up the share market instead? Why should they park their money overseas and gamble with our EPF money instead? Kumar14: Who is behind this Valuecap organisation? Why suddenly, this separate entity is allowed to access funds from the EPF? Are they capable enough to handle it or is it just another desperate and blind move? It has been a very infamous trend where the people's funds are channeled to a company for investment purposes and suddenly POP! the funds disappear and there is nobody to be held responsible but a RM2 shell company. Charge who? Sue whom? The RM2 company (just a registered name)? We have seen this many times. People in power and with connections allow such things to go through and reap/rob the people's wealth and then blame it on organisations which actually don't exist. What if a lot of EPF funds are looted via such scams and nobody is to be pointed at? Where will the government get the funds to replenish the EPF? The people are very bored, disappointed, angry and frustrated at seeing all these dumb and unaccounted for measures being allowed by the government with lame excuses. Please, somebody verify the true purpose, integrity and capability of anybody attempting to use the people's fund.

Raja Petra

Photobucket Ihsan dari blog Go!Malaysian http://gomalaysian.blogspot.com/

ANWAR IBRAHIM

A prosperous future is indivisible from a firm commitment to the principles of distributive justice, the rule of law and a profound respect for human rights.

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