KUALA LUMPUR, June 13 Reuters Headline inflation in Malaysia is expected to remain within the government39;s projected range of 2 to 3.5 for 2024, following the reform of diesel subsidies that began this month, a treasury official said on Thursday.

Diesel fuel prices in much of Malaysia rose by more than 50 on Monday as the government launched its longpromised effort to shift away from costly blanket subsidies towards a targeted approach that mainly helps lowincome groups.

Treasury SecretaryGeneral Johan Mahmood Merican said aid redirected from the subsidy cuts and exemptions for some diesel users were expected to keep rising prices in check.

The impact of inflation is such that it will still remain within the official band, he told a conference on structural reforms on Thursday.

He did not say whether the government39;s outlook would change following adjustments to other blanket subsidies, such as for RON95 petrol, also expected to begin this year.

Malaysia heavily subsidises the costs of items such as cooking oil, rice and other fuels an expense that has ballooned in recent years, straining government coffers.

Reporting by Danial Azhar Editing by Ed Davies

Source Reuters