Economist: RON95 Targeted Subsidy Can Influence Malaysia’s Inflation Trends

Concerns about the implications of RON95 targeted subsidy raised as the Malaysia’s inflation rate easing to 1.9 percent in August 2024.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rasid pointed out that RON95’s significant contribution of 5.0 per cent to the Consumer Price Index (CPI) as a key factor in determining future inflation trends.

He also cautioned that the planned of removal RON95 subsidies could increase the future of prices if not being handle precisely.

“Given the high consumption of RON95 among Malaysians, any subsidy adjustments must be calibrated with precision,” he told as quoted by Bernama.

Yesterday, the Department of Statistics Malaysia (DoSM) said Malaysia’s inflation eased to 1.9 per cent in August 2024, driven by increased price at restaurant, utilities and food, despite the CPI edging up to 133.2 against 130.7 recorded the same month in 2023.