Domino effect of price increase the biggest concern for consumers

WE are living in tough economic times since the pandemic hit us over two years ago.

Since then, many have seen their incomes affected and now need to cope with the increase in the cost of living.

As our purchasing power is deteriorating, any move to withdraw cooking oil subsidy might not be appropriate at this particular time.

Further, such implementation will lead to a domino effect on other goods and services as well.

Prices of fried food at many stalls and food at restaurants are some examples which are going to see higher prices.

Malaysia's consumer price index (CPI) expanded 2.8 per cent year-on-year in May to 126.6 from 123.1 for the same month last year, which was higher than what economists had expected of around 2.6 per cent.

The Department of Statistics further reported that food inflation has reached a new high of 5.2 per cent, the highest since November 2011, which also sees an increase in 93 per cent of all items.

Increases in prices of essential items, especially if the cooking oil price keeps increasing, will affect all consumers regardless of income levels and jobs.

We do not want to see more tragic incidents due to financial hardships and depression.

The people have just begun to regain strength to continue with normal lives post-pandemic and are trying to ensure their families can cope with the pressure of inflation.

Food operators had also just begun to fully operationalise their business after two years of following the restrictions of the Movement Control Order. They will not have a choice other than to increase the price of food items to maintain a profit margin.

Nevertheless, news that industry players will consider lowering the price of cooking oil may bring some relief to consumers who will be hopeful that this can be done.