Government studies cost-push inflation risk as Middle East conflict drives up oil and fuel prices, impacting global trade costs

KUALA LUMPUR: The government is analysing the risk of cost-push inflation stemming from the ongoing conflict in the Middle East.

Deputy Economy Minister Datuk Mohd Shahar Abdullah said the tensions could drive up oil prices and fuel costs, exerting pressure on global energy prices and trade.

He explained that higher fuel costs directly increase logistics expenses for imports and exports, which can translate into higher consumer prices.

“The government is closely monitoring these developments and obtaining verified information from various sources to determine whether the impact will spread more broadly,” he said in the Dewan Negara.

Mohd Shahar was responding to a supplementary question from Senator Tiew Way Keng regarding Malaysia’s reliance on Middle Eastern markets.

He noted that Iran’s position as a major global oil producer adds to the potential economic pressure from the regional conflict.

“The nation’s inflation rate is currently still under control,” the deputy minister assured.

He added that the government remains committed to ensuring the well-being of the people amidst these global developments.

 The Sun Malaysia