00:00It is worth highlighting that as of June 2024, the impact to inflation from higher diesel
00:12pump prices in Peninsular Malaysia has been rather limited, with little evidence of spillovers
00:18to the broader CPI prices.
00:21Notwithstanding this, inflation is expected to trend higher in the second half of the
00:26year amid the recent rationalisation of diesel subsidies.
00:31The impact would, however, remain manageable, given measures by the government to minimise
00:36the extent of cost increases.
00:39Headline and core inflation is projected to remain within our earlier forecasted ranges
00:44of 2-3.5% and 2-3% respectively.
00:48And having said that, headline inflation has remained modest at about 1.8% during the first
00:54half of the year, and we believe that it is not likely to exceed 3% for the year as
01:01a whole, bearing further shocks.
01:05Of note, the outlook remains contingent on further domestic policy measures, particularly
01:11on fuel subsidy rationalisation, as well as risks from external developments, including
01:17geopolitical tensions and climate change, which could drive up global commodity prices.
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