KUALA LUMPUR: Headline inflation is projected to average higher in the range of 1.5-2% in 2020 as the effects of policy-related factors dissipate, according to the World Bank’s Malaysia Economic Monitor “Making Ends Meet” launched this morning.
In the third quarter of 2019, the headline inflation rate increased to 1.3%, reflecting the lapse in the impact of GST zerorisation last year.
The report said wage growth for younger and less-educated workers has been sluggish, persistently trailing the earnings of older and better-educated workers.
It also highlighted varying purchasing power in different parts of the country, poor financial planning, household indebtedness and unaffordable housing as other key factors affecting cost of living.
Alleviating cost of living pressures demands a mix of short-term measures and long-term policies, the report said.