Impossible that inflation in Malaysia is so low lah.

Impossible that inflation in Malaysia is so low lah.

Refer to the chart below to see where global inflation is and where inflation is for Malaysia!

I do think I have to agree with the title of this article because all my favourite food, whether they are here in Kuala Lumpur or Selangor or in Ipoh or Teluk Intan have all increased their prices much faster than whatever the infographics from visualcapitalist.com is showing. I am also super duper sure that you have the same experience as me as well. Paying ever higher for our favourite food and yet somehow still continuing to pay and enjoying the food.

Actually, that’s one reason why the prices would keep increasing. It’s just an equation of demand versus supply. Higher demand versus supply, prices go up. Higher supply versus demand, prices must come down. So… do you know what to do now? Please refer to below for reference first.

Infographics from visualcapitalist.com

I would be paying almost the same for my car versus 2010!

In 2010, I bought a Proton Persona 1.6 Manual for RM52,000. The same model with an automatic gear would be around RM55,000. Proton Persona is regarded as a Segment B model since at the time, Proton Waja and later Proton Preve was shouldering the segment C responsibility. Last month, Proton S70 1.5 litre without turbo has been launched and the price after the rebate is almost the same as a Proton Persona price from 2010! So, actually… price has not changed much.

Beyond car prices please…

Perhaps beyond car prices, many other things have indeed become more expensive. Housing… whether buying or renting has become more expensive. Food is also getting more expensive, whether buying to cook at home or eating at restaurants whether air-conditioned or not. In fact a typical plate of one fried chicken, one egg and vege in a nasi kandar place plus that delicious teh tarik would easily cost us RM15 if not more depending on where in Kuala Lumpur and how big that piece of fried chicken is.

So, yes, indeed inflation is one thing none of us could run from. What we can do is to minimize its effects by spending right or by earning a much higher salary than most people. Truth is, when we earn at the top 10 percent, regardless of the country, we will live a higher quality life because prices of goods cannot be too expensive that the majority could not afford. So, if the majority could afford, then the top 10 percent income earners can buy more.

All the best!

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