The electricity tariff review effective January 1, 2014, is expected to have a temporary effect on the country's inflation rate, probably increasing slightly to 3.0 per cent next year from 2.8 per cent currently, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said today.
She said the central bank does not look on a month-to-month basis.
"Our early assessment is that it may cause a rise in inflation by 0.4 per cent. Therefore, given the current rate is 2.8 per cent, it could touch 3.0 per cent," she told reporters after delivering a talk at the Leadership Energy Summit Asia 2013 today.
Zeti was responding to reporters' queries on the electricity tariff review announcement by the government yesterday.
"We look at the trend and our assessment is that this adjustment will have a temporary effect on inflation," she added.-- Bernama
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Ammar Roshidy
Thanks Zeti, you just stated the obvious.
2013-12-03 22:43