THE national inflation rate could reach a projected 3.1 to 3.3% this year if the monthly inflation rate remains subdued, Economy Minister Rafizi Ramli said.

He said at a press conference in Putrajaya today that since December, the country’s inflation rate has reached a more stable level.

“About six months from the highest level in September (4.5%) and based on other figures published by the Statistics Department, the signs showed we were passing the peak of the increase in the prices of goods.

“We hope if it were to drop at a rate of 0.1% every two months, this downward pattern would continue in the coming months, from 3.8% (December) down to 3.7% (January and February), If this continues, it would mean by the end of this year we may be able to bring inflation to 3.1 to 3.3%,” he said.

Rafizi, however, said the inflation rate also depends on matters beyond the government’s control, such as disruptions in the supply of raw materials caused by international geopolitical factors or local disruptions such as floods.

“If we look at this pattern with some data that show there are signs production costs are decreasing, it means we are on track in that direction. Of course there are other factors.

“For example, bad weather causes disrupts the supply of raw materials.

“Supply disruption is already in the government’s planning through a medium-term initiative that focuses on increasing the supply capacity of raw materials to users,” he said.

On inflation last month, Rafizi said the main contributors to the month’s inflation were the food and non-alcoholic beverages category (7.0%) where the floods increased the price of vegetables, as well as the restaurant and hotel category (7.4%), which was due to the increase in domestic and international visitors.

At the press conference, Rafizi also announced the KitaJaga app, which is a price checker displaying the daily price of each item according to a specific locality.

He said the initiative was the result of a collaboration between the Economy Ministry and a local organisation, KitaJaga, which developed the app and its features.

“The KitaJaga organisation has taken advantage of open data on the OpenDOSM website that was launched a few months ago, and web developers and coders are encouraged to continue using granular data from OpenDOSM in products that benefit the people,” he said.

He said the KitaJaga app allows people to buy wisely with price data at their fingertips.

“The Economy Ministry will start with the price of grocery items because most of the price increases are concentrated in this category, and expand to other categories for the people’s use,” he said. – Bernama, March 27, 2023.