Empirical studies show that budget deficit and fiscal indiscipline ultimately affect macroeconomic performance, particularly inflation. This phenomenon has been so clearly evidenced in Malaysia, whereby long-delayed fiscal deficit corrective measures, although are undeniably necessary, but is now being implemented in a chained manner, one after another akin to shock therapy, resulted in overshooting of consumer prices and rising cost of living. With expectations that other measures are also in the pipeline, coupled with almost across-the-board ringgit depreciation and rising wages, the inflation genie is clearly rearing its ugly head again and could turn bigger this time around, fuelled simultaneously by both cost-push and demand-pull factors, creating an almost a perfect scenario for persistently high inflation, not yet accustomed to members of the public or rakyat in Malaysia. Inflation is expected to be higher this year and also next year (2015), on account of mostly policy-driven arising from fiscal structural adjustment measures through subsidy rationalization and broadening of the tax base by implementing goods and services tax (GST), effective on 1 April 2015. Minimum wage policy and currency depreciation, aimed at boosting exports and avoiding shrinking current account surplus provide additional sparks for rising prices and cost of living in the country.