Kuala lumpur: The government is studying the risk of cost-push inflation in light of the ongoing conflict in the Middle East that has driven up oil prices and fuel costs, said Deputy Economy Minister Datuk Mohd Shahar Abdullah. He said the conflict in the region, especially given Iran's position as a major global oil producer, could exert pressure on energy prices and increase global trade costs.

According to BERNAMA News Agency, Mohd Shahar Abdullah remarked that tensions in the Middle East have the potential to exert pressure on fuel prices. As trade activities involving imports and exports depend heavily on logistics, higher fuel costs could translate into higher prices-this is what is referred to as cost-push inflation. The government is closely monitoring these developments and obtaining verified information from various sources to determine whether the impact will spread more broadly, he noted during the question-and-answer session in the Dewan Negara today.

Mohd Shahar was responding to a supplementary question from Senator Tiew Way Keng on Malaysia's reliance on Middle Eastern markets and the possible implications for the domestic economy. He assured that the nation's inflation rate is currently still under control and emphasized that these developments are being monitored. The government remains committed to ensuring the well-being of the rakyat, he added.