They say prices always go up. I also think so. I have been buying the noodles when RM4 was considered expensive. These days, RM6.50 is considered cheap. 😛 That’s inflation… They also say the government does not understand that the inflation is increasing much faster than the official number. Erm… they may be wrong this time round. Haha… Inflation numbers are now in the red! Not red alert but red as in a negative number.
Just as oil price going up meant petrol price going up and thus bringing with it everything else going up, now that oil price is down, it has also affected the Consumer Price Index (CPI) too. By the way, just like the Overnight Policy Rate (OPR) which is at 10-year low, the CPI is also at a 10-year low too. I wonder if it can also affect the property prices in Selangor or Kuala Lumpur. More details below.
Article in themalaysianreserve.com Department of Statistics Malaysia (DoSM) chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the decrease of Consumer Price Index (CPI) by 2.9% to 117.6 points in April from 121.1 in the same month last year — the lowest level since 2010 was because of the decline in transport (-21.5%), and housing, water, electricity, gas and other fuels (-2.2%) and this contributed 14.6% and 23.8% of overall weight respectively.
Food and non-alcoholic beverage rose 1.2% year -on-year and this contribute 29.5% of CPI weight. If we look at states, for April 2020, the CPI fell between -2% and -3.9% across all states, led by Kedah and Perlis (-3.9%) and followed by Sarawak (-3.8%). CPI for Sabah and Wilayah Persekutuan Labuan declined -3.7% each. Meanwhile these states continue to show an increase in the index of food and non-alcoholic beverage. They are Selangor, Putrajaya, Perak and Terengganu. Please do refer to full details in the article here. Article in themalaysianreserve.com
Okay, so food price is still going up. Naturally, it should. In the world of food, the best food has the longest queue and higher price every year. The not-so-good food is not famous, no queues and needed to sell at a cheaper price in order to get some order. This is called ‘competitiveness’ yeah. This is why some food stalls, you can see them working hard for just a few hours and when they close their stalls, the car they drive home in will make most of us envy.
Earlier article here: Is inflation your friend or foe? High inflation numbers every year is bad. Low inflation numbers for many quarters would also reflect the economic situation too yeah. Logically, no one would want to keep reducing the price they sell their goods and services unless the demand has gone down tremendously. So, grab opportunities to buy nice seafood yeah. Once the world market demand grows back, these XXL prawns will be grossly expensive again. For now… XXL sized black tiger prawns Happy enjoying a low inflation for a while more.
Next suggested article: Just a hedge against inflation. A power one.