Inflation – it’s really inflating at the moment. What about yours?
No one can escape inflation
I was speaking the other day under the invite from OCR Group Bhd and I said that inflation is something we could not escape from. Sorry, somehow I heard someone saying that the government should do something about it or along the lines of surely a better government can do something about it because the election was coming. Sorry to break the bubble but nope, anyone promising you they can keep the inflation low is really lying…
At best, they can keep inflation lower than most countries in the world but to do that, they would need to control the market and that is not the role of a government. It should just be let the market decide. Meanwhole, keeping it low means zero or 1 or 2 percent per year?
Let’s just see some of the more advanced economies and their inflation numbers yeah.
First up, Australia.
As we can see clearly from the below inflation numbers, it’s inflating continuously. We just need to compare it to previous numbers and we will see how inflated it has become versus previously.
Second up, the UK.
Maybe they have managed to contain it at 10%? Since for 3 months,it’s around 10%? Let’s hope by the end of the year everything got very low and their yearly number is below double digits?
Third one has to be Singapore
Somehow I think they are managing to stop it at 7.5%. Is this low? Meanwhile typical salary increment for year 2022 was 3.8%. Report here. Inflation is thus twice the increment. Not an easy year indeed because the increment surely cannot cover the inflation yeah.
High Inflation means good economy or bad economy?
Well, look at those countries above and decide then. Actually, we should look at the consumption of goods and services instead. If people have a stable job, they will spend their money continuosly. If they have a good idea that they will most probably keep their job, then they will look forward to buying something which needs commitment. For example, a property or a car… This is why it’s much more accurate to look at whether people are spending money or not as a measure of a bad or good economy versus just the inflation number alone.
In case you like to know Malaysia’s inflation too. Please refer below:
Meanwhile… Perodua has over 200,000 orders which has yet to be fulfilled. (Report here) Erm… if salary is not stable, does anyone buy a new car?
Property News Malaysia? Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). Alternatively, Follow me on Telegram here.
Next suggested article: It’s not an investment if we know nothing about it