OPR may remain at 2.75, says Rafizi
Rafizi. - Bernama pic.
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He said all parties including consumers must play a role in curbing inflation.
"The price of food and beverages at hotels, restaurant and eateries are the biggest contribution towards inflation," he said during a press conference at his ministry, today.
He further said OPR could be maintained if there are no inflationary hike in February and March.
Rafizi added if the inflation rate was at 3.2 per cent in April, micro economically, the prices of raw materials and other goods will show a decrease but consumers will still pay the usual price.
“For this month, if the inflation doesn’t decrease it is due to the Chinese New Year festivities, we hope the rate will remain and start to decrease in the following month,” he said.
He said the inflation rate of the country last year was 3.3 per cent, this is two per cent higher from the previous year.
“All other components of the consumer price index (CPI) has declined modestly, food and beverage prices had risen.
“When the cost of raw materials rise by two per cent, the increase of prices in restaurants, hotels and others increase as much as seven per cent that is three times more than the materials,” he said.
Last week, Bank Negara Malaysia (BNM) through the Monetary Policy Committee (MPC) made a sudden decision to maintain the OPR at 2.75 per cent after four hikes since May.
The increase was May, July, September and November with a 25 basis points to 2.75 per cent hike compared to the previous 1.75 per cent.
