Why are prices rising?

Global prices of raw materials, from oil to agriculture commodities to metals, have reached record highs in recent years

The fast pace of economic development from population giants China and India have contributed to surging demand for raw materials. At the same time, supply of these raw materials has been frequently interrupted due to bad weather, depletion and geopolitical instability.

High demand and lowered supply are causing higher prices for raw materials all over the world. This has caused a corresponding increase in the price of goods and services. All over the world, people are feeling the effects.

Prices are not rising as quickly in Malaysia as in other countries. Nevertheless, to alleviate the effects of global prices particularly for lower income groups, the BN government continued to maintain low controlled prices on essential items such as rice, flour and petrol amongst many other measures. The BN government had also taken measures to ensure robust economic growth so that employment is kept at healthy levels.