Analysis of the economics article - Inflation expected at 2.3% after pump price rise by The Malaysian Insider

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Assignment Key : E-18618


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News article “Inflation expected at 2.3% after pump price rise” by Trinna Leong in Malaysian Insider dated September 3, 2013 anticipates the possibilities of raise in inflation rate. Leong also discussed price rise to be an effect of reduction in subsidies and possible GST (goods and service tax) which again in turn would push up the goods and commodity prices in the nation. Dual factor of petrol/diesel prices and imposition of GST plan has raised concern for considerable increase in prices of overall goods in the country and are reasons enough for economists to foresee increased inflation rate.
This report will discuss inflation and possible solution while roping in three factors
• Fuel Price hike
• Problems with Fuel Subsidy
• Goods and Service Tax

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