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According to the Department of Statistics Malaysia (DOSM), consumer pricing index (CPI) data shows that inflation in Malaysia grew by 3.4% in June 2022 compared to a year earlier, driven primarily by a 6.1% increase in food costs (July 22). In contrast to May's 2.8% year-over-year increase, the country's CPI increase surged last month to 3.4%.
Many reasons have been attached to the reason as to why the rise in food costs has happened. There are several factors which includes the persistent high cost of processing and transportation, logistics, and the exchange rate also of currencies of countries as against the U.S. dollar. It is not denied that those instances were big factors in influencing the price of food goods in Malaysia as Malaysia too is bound to be a victim of the aforementioned circumstances as we are an open economy which is bound to be affected by effects of global politics and so on.
However, according to the U.N. Food and Agriculture Organization, consumers have not yet noticed a difference in their costs of food although global food commodity prices fell last August for the fifth consecutive month. It must be noted that global food prices typically correspond to increased availability on a global scale. FAO claims that have increased food access or reduced consumer prices have not resulted this time from decreased wholesale prices.
While access to food items has not changed, according to Boubaker Ben-Belhassen, director of the FAO's Markets and Trade Division, availability has. This is despite prices falling for five straight months.
In Malaysia, a normal rakyat is often fed with the idea that the price of our food, let it be chicken, beef or mutton, is influenced by factors like the tax, price of oil and the currency exchange rate. However, when the reverse i.e. tax reduction, drop in price of oil and the strengthening, the price of food remains constant without any changes to it. Isn’t it logical for prices to also drop when the circumstances change? But why doesn’t it baffle me to the very end?
As stated above, the UN has reported that global food prices have dropped but the ordinary consumer is yet to experience the trickling effects of this. What UN reported is apt with the situation in Malaysia today.
The Prime Minister and his Ministers who had come to power with the promise of containing the price of food to help ordinary Malaysians. It is time, measurements are taken to contain this phenomena where the increase of food prices occurs when there is a change in currency exchange for example when the Ringgit strengthens against the Dollar, the opposite never occurs.
Perhaps the government can start with better policies and strict inspections by the relevant agencies to help reverse this phenomena.
Chandrakumanan A is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav.
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