Malaysian annual inflation soared to 8.5 percent in July, sharply up from 7.7 percent in June. The July data was the steepest rise since 8.5 percent in December 1981.
The government announced that the price of petrol will be cut to 2.50 ringgit per litre from 2.70 effective Aug. 23, a move which will dampen inflation.
Despite the surge in inflation, Malaysia’s central bank has kept interest rates unchanged for over two years at 3.5 percent.
Governor Zeti Akhtar Aziz has said slower economic growth and weakening commodity prices would help reduce price pressures ahead, especially next year.
