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Bank Negara Does Not Foresee Higher Inflation From Fuel Price Hike

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KUALA LUMPUR, Sept 13- Bank Negara does not foresee a higher inflation rate following the rise of fuel prices, as the global economy was still growing modestly, Governor Tan Sri Dr Zeti Akhtar Aziz said Thursday.

bank-negara“If global commodity prices, including fuel prices, increase substantially, then of course it would contribute to higher inflation, and when fuel prices increase, it is a global price that is beyond our control.

“There are limits to which the government can support. Any government in the world that tries to contain such price increases through subsidies will finally experience a financial burden that is not sustainable,” she told reporters on the sidelines of the closing ceremony of the 2013 Alliance for Financial Inclusion (AFI) Global Policy Forum Thursday.

For the January-July period, inflation remained low at 1.7 per cent.

The three-day forum, jointly hosted by the AFI and the central bank, concluded today with the AFI Network’s commitment to the Sasana Accord.

Through the accord, financial inclusion policy-making and strategies will see evidence and data-based results that can contribute to accelerate the progress and the measurement of the impact.

 

– BERNAMA

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