Inflation to exceed 6% in June, says Zeti

Take the cue from Zeti. Inflation is here to stay. Atleast until second half of 2009. So with the low fixed deposit rates it would logically mean the more you save the more you lose. But of course you can look at alternative investments such as unit trust funds, blue chip shares and properties. However for any money put into these alternative investments, a long term view of atleast 3-5 years must be adopted. With this in mind, these alternative investments will serve you well and have historically given returns of 10% and above. Below is an extract of the article as reported by the Star.

KUALA LUMPUR: Bank Negara Malaysia expects the consumer price inflation to exceed 6% in June, following the adjustment in petrol prices by 40.6% and diesel prices by 63.3%, says Governor Tan Sri Dr Zeti Akhtar Aziz.
“While domestic inflation is expected to remain elevated for the remaining part of this year and early next year, it is expected to moderate in the second half of 2009,” she said Wednesday.
She said the inflationary pressure was also from increase in electricity tariffs on July 1, with tariffs by up to 18% for households and an average of 26% for some commercial and industry users.