IMF: Malaysia’s inflation could reach up to 8pc as Russian-Ukrainian conflict, supply bottleneck squeeze prices
Emerging economies like Malaysia could see inflation skyrocket up to 8 per cent this year as the war in Ukraine is expected to keep energy costs up while a persistent global supply bottleneck hinders growth, according to an IMF forecast.
(MMO) – The Russian-Ukrainian conflict has put pressure on commodity prices, with oil and gas supplies tight after years of subdued investment and geopolitical uncertainty.
“This was a main inflation driver in Europe and, to a lesser extent, the United States,” the IMF said.
“Rising food prices also played a major role in most emerging markets and developing economies, as extreme weather reduced harvests and mounting oil and gas prices drove up fertiliser costs.”
Malaysia, a net food importer, is one of many countries hit by surging food prices, adding burden to consumers still reeling from the pandemic.
March’s Consumer Price Index (CPI) rose by 2.2 per cent to 125.6 against 122.9 in March 2021, Statistics Department data showed. The index surpassed the average inflation for the January 2011-March 2022 period of 1.9 per cent.