Wednesday, June 20, 2007

Checking Inflation

Reported in The Star, the Government is confident of reducing the country’s inflation rate to 2.5% this year from 3% at the end of 2006, given the current price control measures being adopted.

Under Ops Gaji from May 21 to June 18, Deputy Prime Minister Najib Razak said 99,312 premises had been checked nationwide and goods worth RM214,875 seized, and RM162,530 in compound notices issued.

I am not too sure if the control measure is effective. Yesterday, I had my dinner at the SS2's hawker centre. A plate of rice with a slice of stingray, some potatoes and lady fingers cost me RM6.

Today, at a coffee shop in Bangsar I had almost similar dishes with rice and that set me off by RM7.40.

Can I trust the official inflation rate published? I guess no, it is not reflective of the real inflation on the ground.

If you have paid outrageous prices, share with us here.

4 comments:

Anonymous said...

Hi Kay Peng,

I am in agreement with you that urban inflation rate is always not reflected by the overall rural-urban CPI rate released officially. It is inevitable when we deal with statistical averages.

However, regarding your example, perhaps you should go back tomorrow to SS2 and eat the same thing and check if price has increased. That would be more accurate way to see if price has increased.

I could be eating chicken rice in Bangsar one day and Sungkai another - I bet the Sungkai's price would be much lower, but that won't mean inflation rate is negative.

Elanor

Khoo Kay Peng said...

Appreciate your logic. I do eat at the places mentioned quite often. Yes, prices have gone up.

So, no need to return tomorrow and check out the prices. The prices won't go up everyday. The last I ate there was more than a month ago, it was at least RM1 cheaper. By the way, I am a fish person so same dishes almost everytime.

Ko-chi Wai said...

i remember reading somewhere before that the basket of goods that form the CPI are mostly price controlled items, as well as certain white goods which ppl don't usually change every month or year. that in a way would have distorted the CPI vis-a-vis actual prices of every day goods for the man on the street. the CPI definitely means next to nothing for most Malaysians.

Anonymous said...

it doest help that the government is still creating money.it will only decrease the value of the dollar. So instead of a fast food meal beting 5 bucks this year next year it will be 6.it also comes into play with why people are going to lose there homes. its causing inflation. soon the cost of everything is getting farhter than the adverage peorson can afford, and rasing minimum wage dosent equal to the ammount items are being rasied. so less money for conumers to spend.
they also saying that they created some 150 milloin jobs or something like that but most of them are working at retail stores and malls or fastfood places.making the rich richer and the poor poorer, and its almost nearly impossible to live on that in california.lets say your working at a job where your making about 60k a year,and every few years they raise minmum wage, from 6 to 7 dollars an hour, which is roughly equal 16%.so that means if your not getting a 16% increase (get a raise),from what your making. you are actually getting more poor. 16% of 60k is 10k=70k a year. so if you never got that 10k raise in those few years you actually got demoted, finacally. because soon the cost of almost everything will go up again and so will minimum wage. even when i lived in califonia i was makng about 40k a year (about 3k a month)and im single with no kids, and it was hard enough.$1200 apartment,+$300 utiites /tv/internet, +$300 car pmt,+$200auto ins.,+$400 month of gas, +$200health ins.=$2600 per month
$2600-$3000=$400/30 days= 13 dollars a day to spend.
couldnt even fill my fridge.I only ate cheap food got heart burn every day and gained like 45lbs.
i couldnt stand it anymore so i moved to europe, and every day i read the paper to see the american dollar slowing go down.Im waiting for a change then i might come back, but i dont see it changing anytime soon.I have lost all that weight i gained and havent had heart burn since(God,i love euroupe).its a good thing too, because i dont think they sell tums here.