KUALA LUMPUR – Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin expects the increase in the prices of goods this August to be around 1% to 2% only and not up to 20% as previously projected.
Ameer said sharp price hikes were unlikely because the ringgit has stabilised and that the trend was expected to strengthen further based on recent movements.
“Within the next two or three days, the US dollar’s value will fall from RM4.53 to RM4.54. So, I can say that the price will not go up by 20% in August.
“I’m not sure as to whether or not the prices of all items will increase, but if they do, the increase will be between 1% and 2%,” he said when appearing as a guest on the Bernama TV “Apa Khabar Malaysia” programme here today.
He said the increase in the prices of goods depended on various factors such as inflation, demand and supply as well as the exchange rate of the ringgit.
Previously, Ameer and several economists had said that the consumer goods price index was likely to rise by up to 20% by October this year due to the increase in operational costs in Malaysia and import inflation.
The cost increase is said to be due to the depreciation of the ringgit against the US dollar, which leads to high import inflation.
Meanwhile, Ameer suggested that the government consider giving targeted subsidies through the provision of monthly cash aid to the B40 group. – Bernama, July 19, 2023
