Rice price hike: Efforts should be taken to fight greedflation

Starting next month, consumers can expect an increase in the price of imported rice on the market, with an increase of RM1 to RM2 per 10-kilogramme (kg) bag.

(Sinar Daily) – Everyone, including the government, should play a role in combating ‘greedflation’, where companies pass on cost increases to customers to protect their own profits, says expert.

Malaysia University of Science and Technology (MUST) Provost for Research and Innovation Professor Geoffrey Williams said although the hike is extremely minor, it should be absorbed by merchants, with the additional expenses spread over all of their items to alleviate the strain on rice.

“Because the price of local rice would not be reduced, customers should be wise and move to Malaysian rice, which is less expensive.

“Everyone, including the government, should help to counteract greedflation, which occurs when businesses pass on cost increases to customers in order to safeguard their own profits,” he said, adding that rice prices may climb this month as greedy businesses may pass on costs to consumers.

Williams also said the businesses are also demanding bigger subsidies and threatening Menu Rahmah by claiming that charging RM5 per meal will become more expensive.

“As a result, we must know that shop and restaurant owners justify raising prices, requesting subsidies, or eliminating services. “Actually, the increase in imported rice prices is so minor that it may be absorbed by businesses rather than passed on to consumers, Williams said.

Prices fluctuate, so if prices decline in the future, businesses will not lower their rates to consumers; therefore, the government should not be misled by this noise, Williams added.

Starting next month, consumers can expect an increase in the price of imported rice on the market, with an increase of RM1 to RM2 per 10-kilogramme (kg) bag.