MYDIN Mohamed Holdings Berhad (Mydin) managing director Ameer Ali Mydin expects the increase in the prices of goods this August to be around 1-2% only and not up to 20% as previously projected. 

Ameer said sharp price hikes were unlikely because the ringgit had stabilised and the trend was expected to strengthen further based on recent movements. 

“Within the next two or three days, the US dollar value will fall. So, I can say that the price will not go up by 20% in August. 

“I’m not sure as to whether or not the prices of all items will increase, but if they do, the increase will be between one and two percent,” he said when appearing as a guest on the Bernama TV “Apa Khabar Malaysia” programme today. 

He said the increase in commodity prices depended on various factors such as inflation and demand and supply as well as the exchange rate of the ringgit.  

Previously, Ameer and several economists had said the consumer goods price index was likely to rise by up to 20% by October this year due to the increase in operational costs in Malaysia and import inflation. 

The cost increase was said to be due to the depreciation of the ringgit against the US dollar, which led to high import inflation. 

Ameer suggested that the government consider giving targeted subsidies through the provision of monthly cash aid to the B40 group. – Bernama, July 19, 2023.