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Inflation to fall when petrol prices drop? Not so simple
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YOURSAY | ‘There was much less inflation when oil prices were much higher.'

Johari: Inflation will ease when petrol prices drop

Anonymous #33227154: Almost everything, especially food prices, have apparently increased by another 10 percent to 20 percent since Jan 1, 2017 when petrol prices increased.

But when the petrol prices fell early last year, none of the businesses decrease their prices. This is clearly profiteering and customers are treated as fools.

Gaji Buta: But if petrol prices drop, our currency would weaken further, and the prices of imported goods would rise even more, so how? Not so simple, Second Finance Minister Johari Abdul Ghani.

James_3392: Johari, please answer this:

1) How can the petrol price be RM2.30 per litre (RON 95) when crude oil is only US$50 to US$55 per barrel?

Previously, when petrol price was at RM2.30 per litre, crude price was close to US$100 per barrel. Now if crude should ever go up to US$100, what then will be our petrol price?

2) For petrol prices to go down significantly and thus reduce inflation as the minister says, crude will have to be below US$40 per barrel. If this happens, what will happen to our national budget, which relies heavily on oil revenue?

Will they not increase the Goods & Services Tax (GST) and other taxes again to make up for the shortfall, and will this not cause further inflation?

Poor financial management, corruption, a bloated civil service - in short, Umno's legacy, culture, behaviour and practices - these are the root causes of our financial predicament. We have got to change it.

Anonymous 2436471476414726: Johari, you surely are painting a very bleak future for the rakyat. The price of crude oil is almost at rock bottom and yet to you, this is the reason for the high inflation.

We dread to picture what the inflation would be when the price of crude goes up to, say, US$100 per barrel or even US$70 per barrel as in the recent past.

The high inflation is because of GST, government wastage and leakages, chronic corruption, cronyism, etc. In other words, to reduce inflation the BN government must be ousted in the coming election. Otherwise, prepare ourselves for doomsday.

Non Politican: There are many reasons which resulted in the rise of inflation (which resulted in the ‘stealing’ of the real wealth of the people).

1) I would agree that that the rise in the retail prices of petrol is one of the main causes, in the same way as the imposition of GST and the fall of ringgit (caused by events externally and internally and the inability of our various institutions to regulate and coordinate the ringgit exchange rate in a linked world).

2) Once domestic retailers have raised the price of goods and services due to the increase in petrol prices and should they were to come down later, these retailers are not going to lower the prices of their products and services - and the consumers are the one who will lose.

What is needed is very strict enforcement and punishment against such profiteering by the retailers.

Hopeful123: Yesterday I had lunch at an Indian restaurant in Johor Baru. They charged 50 sen for a glass of water.

I don't see any logic because if I use their toilet, I would have easily used up to 10 litres and that is free. Five such glasses equal to more than a litre of petrol.

Johari, can you bring down the price of such items like roti canai, mee goreng, nasi lemak, etc? Otherwise, you are just another Abdul Rahman Dahlan.

Why is our cost of living spiralling up so fast? It is all because of the plunging value of our ringgit. Why is it so low compared to other currencies? Again, it's all about the poor management of our national economy.

Weak international perception and faith towards our nation/government due to all the scandals, losses, corruption at the highest levels, leakages, inefficiencies, poor leadership and lack of competition are the causes.

Now, the easiest way out for them is to tax Malaysians more, like another contribution scheme - (EIS) for employers and employees - making doing business here more expensive and more uncompetitive by increasing costs.

Why is it in America, which is a developed country, goods and food are relatively much cheaper? It's all about efficiency and competition. If you lack these two things, consumers will pay through their noses.

If only our ministers could see, rather than spin.

Appum: I'd like to give this minister a simple indication of "inflation" at the present level of oil prices - at US$48 per barrel.

Let us go into any coffee shop. Two years ago, a bowl of mee or mee goreng was about RM3.50 to RM4. Today it is RM5 to RM6.

When we ask why the price increase, the reply from the proprietor is that all prices of goods and raw materials have gone up, and would add sarcastically, “You don't know this, ah”?

But after these increases, have we ever seen a reduction of prices even when the price of oil had gone down?

Yes, inflation levels can go up and down, but will consumer prices ever drop? Can we ever have a bowl of noodles for RM1.50 like it was years ago?

AP: Indeed, if the fuel prices drop, will Johari guarantee that the prices of goods will drop too? In Malaysia, what goes up never comes down.

Bornean: Don't blame this and that on the inflation. You are the government, you just can't sit there wait for the money to fall from the sky.

If you and your colleagues don't know how to manage a country, then better let someone else do it.

Headhunter: Johari is stating the obvious. The question to him is, when is the price of fuel going to drop? Perhaps when the BN is kicked out?


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