Malaysia's Inflation Jumps to 26-Year High on Fuel

inflation dah naik beb...pasal harga minyak la nih...kalau interest rate naik lepas ni..terukla sapa yg loan diorang floating rate kalau blr naik

By Stephanie Phang and Ranjeetha Pakiam

July 23 (Bloomberg) -- Malaysia's inflation accelerated to a 26-year high in June after the government increased fuel prices, spurring speculation the central bank will raise interest rates for the first time since April 2006.

Consumer prices rose 7.7 percent from a year earlier, after a 3.8 percent gain in May, Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad told reporters today in Putrajaya, outside Kuala Lumpur. Inflation may stay above 7 percent in July, the minister added.

Malaysia may be forced to join neighboring Thailand and Indonesia in raising borrowing costs amid soaring oil and food prices, even as a U.S. slowdown threatens the region's economic expansion. Asian central banks need ``decisive tightening'' of monetary policies to combat inflation, the Asian Development Bank said yesterday.