Malaysia: Low-income households hard hit by inflation

BNM Governor Nor Shamsiah Mohd Yunus (Photo: https://www.theedgemarkets.com/)

Kuala Lumpur (VNA) - Malaysia's economy is on a recovery path, but ongoing inflation is inflicting hardship on certain segments, including low-income households who have been disproportionately affected by rising price pressures, said Bank Negara Malaysia (BNM).

There is some unevenness in the economic recovery, said the central bank’s Governor Nor Shamsiah Mohd Yunus on July 26, adding that the rise in food prices in particular has affected this group to a larger extent.

Although the direct impact from elevated oil prices on headline inflation has largely been dampened by price controls on fuel and essential food items, there are still indirect effects from high global commodity prices, as they are a key driver of the rise in producers' input costs, Nor Shamsiah said.

Inflation developments in Malaysia this year reflect the pass-through of some of these costs, as well as the strengthening of domestic demand, she said.

Consequently, she said although headline inflation is still projected to remain low and stable, ranging between 2.2% and 3.2% this year, core inflation averaged higher at 2.2% in the first half of 2022 versus 0.7% a year ago./.

VNA