KL to boost food output

KL to boost food output

KUALA LUMPUR (AFP): Malaysia will increase food production to keep inflation low as the economy shows signs of recovery, the official Bernama news agency said Friday.

"The government intends to reduce the inflation to its lowest level, if possible to zero percent," said Deputy Prime Minister Abdullah Ahmad Badawi.

Consumer prices rose 2.5 percent year-on-year in July and were up 0.1 percent from the previous month, the statistics department said Monday.

It attributed the increase in the first seven months to the higher cost of food, beverages and tobacco, medical care and health expenses and miscellaneous goods and services.

Economists said the move to contain inflation would keep interest rates low.