Opposition Leader Anwar Ibrahim today accused the government of misleading the public on the need to cut subsidies as commodity prices were falling worldwide.

Adding that it was unnecessary pain that led to higher overall inflation, he said that subsidy cuts on petrol and sugar was wrongly timed.

"The excuse that prices must rise to adjust to global market is misleading and confusing," he told reporters at the PKR headquarters.

The PKR leader gave figures to show that crude oil prices have eased to US$106.80 in 2014 compared to US$111 per barrel in 2012. Over the same period, the average petrol prices per litre rose to RM2.10 from RM1.90.

Similarly, international sugar price fell to US15.2 cents per pound from 21.6 cents between 2012-2014. In Malaysia, prices per kilogramme rose from RM2.50-RM2.84 over the same period.

In September last year, the controlled price per litre of RON95 grade petrol and diesel were hiked by 20 sen, the first increase after nearly three years.

Then in October, Prime Minister Najib Abdul Razak said the government was taking away sugar subsidies in a move that was good for one's libido.

Anwar said the government didn't understand the woes of the middle class who were under great pressure given the rising inflation.

Extrapolating from Bank Negara and other reports, Anwar said Malaysia's inflation rate had risen 2.4 times in a year. It was at 1.2 percent in December 2012 and was at 2.9 percent in November 2013.

These were prices based on a Consumer Price Index, comprising basket of common goods and services.

Anwar noted that inflation had jumped in September 2013 after petrol subsidies were cut.

"The rising inflation is also bad for the country overall, especially when inflation is rising faster than the people's income.

“The reality is that it will cause the people to downgrade their lifestyles to find cheaper alternatives. This will then lead to lower income for the traders and businesses, which then results in lower gross domestic product (GDP)," he said.

Asked by reporters later, Anwar also rubbished a special Cabinet committee established to tackle the cost of living, mooted yesterday by Deputy Finance Minister Ahmad Maslan.

"Not that they don't know...onion price is up, kangkung price is down. It is meaningless... First, the policies must change to save money and end monopolies.

"Sugar price will not fall because of monopoly and the fate of paddy farmers will not improve if there is still a monopoly," he said.