New ceiling price for chicken will help contain inflation

This is as the new ceiling price per kg for Peninsular Malaysia is only an increase of 5.6%

by FAYYADH JAAFAR / pic by MUHD AMIN NAHARUL

THE updated ceiling price for chicken, which will come into effect from tomorrow, is RM9.40 per kg, up by 50 sen from the previous RM8.90 per kg.

According to MIDF Research, the multi-year high recorded in May’s Consumer Price Index (CPI) was due mainly to the spike in the prices of poultry products, especially chicken meat and egg.

“This is smaller than the expected increase to around RM10 to RM12 per kg if chicken prices were to be floated,” it said in a statement today.

It added that the new ceiling price for chicken at RM9.40 per kg for Peninsular Malaysia is only an increase of 5.6%.

Meanwhile, the approval given to the Farmers Organisation Authority to import more than 4,500 tonnes of chicken from Thailand is expected to stabilise chicken supply in the domestic market.

“We expect these measures will limit upward pressure on chicken prices for now. Going forward, we foresee the government will continue to explore more initiatives to ease the upward pressures on food prices in the longer run,” it said.

On the inflation outlook, MIDF Research forecasts CPI inflation will be at 2.8% in 2022, up from 2.5% last year. 

This takes into account faster food inflation and a continued improvement in domestic spending activity this year.