Spillover

The rise in fuel & electricity tariff may push CPI to 7% for 2008.
It will also likely to dampen consumer sentiment and spending.

Immediate impact would be weaker traffic flow for leisure & festive traveling, which will in turn affect toll concessionaires.

Demand for consumer products may weaken as consumer adjusts spending patterns.

Property sector may see minimal impact but higher inflationary pressures may dampen sentiments of new sales. Property prices are unlikely to reduce due to rising raw material cost coupled with perception of property as inflation hedge.

For logistic industry, freight forwarder and haulage providers will be negatively impacted although these costs may be passed on to consumers.

As for banking sector, softer credit demand is expected arising from curtailment of consumption spending and increasing operating costs for businesses.

Sales of vehicles less than 2000cc may increase compared to luxury lines and use of public transportation should improve.


Summarize from Satrbiz, Monday 9/6/08