Malaysia’s economy is growing at a rate of 7.3% and the gold price is at a record low, but its inflation rate is still climbing.
The Reserve Bank of Malaysia on Wednesday said that the monthly inflation rate has climbed to 9 per cent from 7.4 per cent last month.
It said the increase in the rate is largely due to the rising price of gold.
The government is trying to reduce the cost of purchasing the metal by raising the minimum wage, lowering fuel prices and reducing VAT on petrol.
On Wednesday, the government also lifted a ban on the importation of alcohol, tobacco, and chewing gum.
The latest inflation figures come as the world’s second-largest economy is also facing a global economic slowdown, as the country’s exports falter.
The currency, the Malaysian ringgit, has fallen sharply against the US dollar in recent months, as investors have priced in the countrys weaker currency.
The price of the Malaysian Ringgit has fallen to a record one-month low of RM1,049.88 against the dollar on Wednesday.