The increase in inflation rate of 2.9% in October 2021 as compared to 2.2% in September 2021 does not reflect the soaring prices in daily necessities such as eggs, chickens and vegetables, rising construction costs involving both material and labour as well as higher airline ticket prices to Sarawak. Basic necessities like chicken have risen to the highest levels in memory, much higher than when PH was in government.
Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi two days ago blamed higher operational costs in the supply chain and assured Malaysians that soaring prices of daily necessities would be resolved by December 9. The Federal government should bear full responsibility if the prices are not brought down by December 9.
The failed total lockdown resulting from the COVID-19 pandemic had resulted in RM42 billion of losses to the construction sector and is not helped by rising labour and material cost. The declining strength of the ringgit at RM4.24 to the US dollar does not help to mitigate the negative effects of imported inflation.