The New Emerging Markets are increasingly pressurised by the worsening inflation. Since two years ago, the wind of surging prices has been blowing wild across the globe, with vibrations particularly felt in the developing economies.
This round of inflation has been triggered off primarily by the spiralling fuel and food prices. The industralised nations are milder hit comparatively, thanks to the slower growth in economy. Conversely, the New Emerging Markets' pace of growth is a lot faster, thereby giving rise to more serious inflation.
Malaysia, being one of the New Emerging Markets, has not been excepted from the typhoon of surging inflation. Tighten your belts and stand prepared for the hit.
But one consolation is that our rate of inflation would not be up to the magnitude of that of Vietnam. Vietnam is currently running with an inflation at a staggering rate of 25% and it is at the verge of falling into a crisis.
Believe me, our CPI (consumer price index) is set to move higher!
The above is my article published in The Chinese Methodist Message dated June 22, 2008.