CPI
The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed basket of goods and services purchased by households. It is a widely used statistic for measuring inflation and deflation.
Rapidly Rising on Google Trends MY
CPI is rapidly rising on Google Trends MY because of the recent hike in inflation in Malaysia. The CPI for Malaysia increased by 4.4% in July 2022, the highest rate since September 2018. The increase was driven by higher prices for food, transportation, and housing.
Causes of Rising CPI
Several factors have contributed to the rising CPI in Malaysia, including:
- Supply chain disruptions: The COVID-19 pandemic has caused disruptions in global supply chains, leading to shortages of goods and higher prices.
- Rising energy prices: The war in Ukraine has led to a surge in energy prices, which has increased the cost of transportation and other goods and services.
- Weakening ringgit: The Malaysian ringgit has weakened against the US dollar, making imported goods more expensive.
Impact of Rising CPI
Rising CPI can have several negative impacts on the economy and households:
- Reduced purchasing power: As prices rise, households can purchase fewer goods and services with the same amount of money.
- Increased poverty: Rising CPI can push more households into poverty, as they struggle to afford basic necessities.
- Business costs: Rising CPI can increase business costs, as they have to pay more for raw materials, transportation, and other expenses.
Government Response
The Malaysian government has taken several steps to address rising CPI, including:
- Targeted subsidies: The government has provided subsidies for essential goods such as fuel, cooking oil, and electricity to help ease the burden on households.
- Interest rate hikes: The central bank has raised interest rates to curb inflation.
- Fiscal stimulus: The government has introduced fiscal stimulus measures to support businesses and households.
Outlook
The outlook for CPI in Malaysia remains uncertain. The war in Ukraine and ongoing supply chain disruptions are likely to continue to put upward pressure on prices. However, the government’s measures may help to moderate inflation in the coming months.
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Please search for “cpi” which is rapidly rising on Google Trends MY and explain in detail. Answers should be in English.
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