A current concern is that a prolonged period of a weak ringgit, coupled with a rise in commodity and food prices, will lead to added inflationary pressures. Malaysia also imported around RM8 billion worth of vegetable oils and fats from Indonesia last year,” says UOB Malaysia senior economist Julia Goh. Malaysia imports a significant amount of its food — RM51.4 billion in food products compared to RM38.7 billion in exports in 2021. Economists anticipate food inflation to increase for some time. Nazmi believes the rise in food prices will remain within the range of 4% and 5% y-o-y before easing off towards year-end.
