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Will the new rates stoke inflation? What do you think?
Hi Funny Leone, You can expect a spike in inflation in the initial period of implementation. In most countries, implementation of GST has been quite inflationary (except for Malaysia that managed to tame the risk). However, given that 55% of the items in the Consumer Price Index (CPI) are excluded from GST, inflationary pressures might be marginal. Cheers, Team BankBazaar