February CPI hike due to higher oil prices

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The CPI, a measure of inflation, rose by 4.5 per cent to 119.7 during the month compared to 114.5 in February last year.

KUALA LUMPUR: The 4.5 per cent hike in Consumer Price Index (CPI) in February, the fastest growth in eight years, was mainly due to higher oil prices during the reviewed month, said Second Finance Minister, Datuk Seri Johari Abdul Ghani.

“The main reason is the cost of petrol. If we look at the transportation cost in the CPI basket, it represented almost 13 to 14 per cent.

“When you have the factor of petrol prices going up, it definitely affects us,” he told reporters after opening the Global Offset and Countertrade Association (GOCA) Asia Pacific Conference 2017 yesterday.

Meanwhile, the average price of one litre of RON95 petrol was RM2.30 during the reviewed month compared to RM1.75 in the same month last year, while that of RON97 went up to RM2.60 from RM2.05.

The CPI, a measure of inflation, rose by 4.5 per cent to 119.7 during the month compared to 114.5 in February last year.

Nevertheless, Johari said inflation would likely ease in the coming months given that global oil prices had started to stabilise and slow down.

“I think, over time, we will see some adjustment to the figures (CPI and transport contribution),” he added.

Asked whether the government plans to re-introduce the oil subsidy if oil prices recover, Johari said: “I think it’s a bit too early for me to discuss that.” —  Bernama