KUALA LUMPUR (Aug 16): Bank Negara Malaysia (BNM) said there are little signs of the recent diesel float pushing up prices in the economy, and that its current inflation forecast had already taken into account effects of the fuel subsidy rationalisation.

The impact of fuel subsidy adjustments is expected to remain manageable, thanks to government measures aimed at minimising cost increases for businesses, BNM governor Datuk Seri Abdul Rasheed Ghaffour said at a press conference after the release of second-quarter gross domestic product data.

The 2.0%-3.5% inflation forecast range has, “to some extent”, factored in the rationalisation of diesel subsidies as well as for RON95 if implemented, Abdul Rasheed said.

“The inflationary impact of higher diesel pump prices in Peninsular Malaysia has been fairly limited, with little evidence of spillover into the broader” consumer price index, the central bank governor added. 

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