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This dilemma is suffered by all the Central Banks and there is no confirmative conclusion on its solutions. However, the fact that Malaysia suffers seriously from the second spiral of inflations from the indiscriminately rise in prices of consumer products other than the petrol itself warrant grave concerns. If the inflation rates are soaring while the interest rates remain constant, the negative real interest rates would harm the economy tremendously. Extending the controlled price items list is one of the measures to address the inflationary pressure faced by Malaysia.
Even though there are harmful effects from the petrol price hike, the move is imminent but gradually...
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Common topics in this essay:
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