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Finance Ministry projects up to 3.6pc of inflation as Putrajaya tighten belts on subsidies in 2024

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KUALA LUMPUR, Oct 13 — The Ministry of Finance (MOF) has predicted an inflation rate of up to 3.6 per cent next year, as Putrajaya undergoes belt-tightening with a gradual shift...

The Finance Ministry anticipated a Consumer Price Index growth of between 2.1 to 3.6 per cent in 2024, a rising trend since the rate dipped to negative levels in the pandemic era of 2020. — Picture by Shafwan ZaidonKUALA LUMPUR, Oct 13 — The Ministry of Finance has predicted an inflation rate of up to 3.6 per cent next year, as Putrajaya undergoes belt-tightening with a gradual shift to targeted subsidies.

Budget 2024 which will be tabled by Prime Minister Datuk Seri Anwar Ibrahim is expected to announce several subsidy rationalisation mechanisms, as Putrajaya move away from blanket subsidy on its road towards fiscal sustainability.is expecting a move to tighten diesel subsidy to plug up leakages from smuggling, and the expansion of the electricity subsidy cut and discontinuation of subsidy on chicken and egg prices.

This comes as last month, the BNM announced that the rate will stay at 3 per cent, marking the third consecutive session where its Monetary Policy Committee has opted to pause at the same level. The OPR is expected to stay for the remainder of the year.

 

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