In a Facebook post, Anwar said this tool would assist the government in formulating and implementing more precise and effective policies.

The decision to develop the indicator was reached during the first meeting of the year of the national action council on cost of living (Naccol) in Parliament today.

Domestic trade and cost of living minister Armizan Mohd Ali previously said the government spent huge sums on subsidies through various social protection and safety net programmes to reduce the impact of the rising cost of living.

However, blanket subsidies such as those for electricity, fuel and food are also enjoyed by the higher income groups.

This has prompted the government to reform its subsidy programmes, which cost RM81 billion last year, to ensure they are channelled to those really in need.

Meanwhile, Anwar said today’s Naccol meeting also discussed several issues related to the cost of living, especially concerning prices and the supply of rice in the country.

“Several short-term mechanisms have been identified and will be implemented in the near future,” he said.

He also emphasised the need for continuous enforcement so that no party would take advantage of the expansion of the scope and changes in the service tax rates which were implemented on selected services from March 1.

Anwar added that the domestic trade and cost of living ministry had conducted several inspections to ensure that traders did not indiscriminately raise prices.