The rise in Malaysian consumer prices is expected to moderate in August and September after hitting a 27-year-high of 8.5 percent in July, a domestic newspaper reported on Saturday, citing a government minister.

“The worst is behind us. It should be lower than 8.5 percent in August and September,” the Business Times quoted Second Finance Minister Nor Mohamed Yakcop as saying. Nor Mohamed made the remarks in an interview with local television station TV3 late on Friday, the paper said.
July’s inflation of 8.5 percent, Malaysia’s highest since December 1981, exceeded market expectations of 7.8 percent and was higher than June’s figure of 7.7 percent. The strong surge in inflation prompted the government to cut retail fuel prices by up to 5.6 percent last month after sharply raising them in June in an unpopular move to cut costly fuel subsidies.
(Source: Daily Times)