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Wednesday, June 4, 2008
Inflation!! What can we do about it??
When I was busy at the production, the Malaysian Prime Minister suddenly announced an increase of petrol price to about 50%. The increase come as a surprise to me and most of my colleagues. Most of the people anticipating increase about 100%, but not so soon. As soon as I got the news from a colleague, I quickly settle everything in the line and quickly leave office and go for a short pit-stop at one of the station. It's definitely a bad day for me as I only know about the news after office hour which could mean one thing, jam at all the petrol station. I guess it correctly but I do not care anymore. I just cut queue and manage to get everything done by a while. The bad thing about the pit stop is that I manage to that I did not manage to refuel full tank using my credit card. Another thing is that I bring very few cash, thus I can refuel RM24, which will translate into about RM10 savings. It is still ok for me. I'm posting not because of what I have gone through. I believe what I have gone through will be the same for most of the Malaysian. INFLATION. With the HIKE of petrol price, I believe will be a start of new chapter, could most likely mean nightmare for most Malaysian. It is a known fact that the public transportation in Malaysia is the "best" that most Malaysian needed to purchase a private vehicle just to go work and go from a place to another. Without own vehicle, the only transportation that most Malaysian can rely is by walking or cycling. Ok. Enough of the rant. What we will be seeing soon is inflation hike will take place. The inflation will be so severe that most of us will have to endure until we can think of a better way to overcome it. Think, increase at about 50% petrol price, logistic will 100% increase (we do not know how much it will increase, of course), thus the chain of reaction will go all the way and pass all the burden to consumer. In the end, it will be the consumer to suffer. The inflation statistic that will soon be released by the authority will definitely be a far cry from what the consumers are experiencing. Imagine, without the hike of petrol price, consumers in Malaysia are in fact facing about 2 figure inflation, but the official released was about 3%, which IMO, is bull shit. Let's take some example to prove the point. Almost every year, we can see about RM0.50 increase in food like economy rice etc. Let say the previous priced at about RM2, RM0.50 will translate into 25% of increase. Then we talk about Gardenia bread. Last time was about RM1.90 but if I'm not wrong, already increased about 25%. What else we want to get the example from? I still remember I used to eat at those old kopitiam having to spend less than RM5. But if you ask me now, I will definitely say additional RM5. I cannot blame the business operator, they are not doing for charity, but with everything going up and RM is becoming smaller and insignificant, they have no choice but to increase the price accordingly. Inflation is getting from bad to worse daily. Our purchasing power becoming from low to lower and end up we hardly survive. No wonder my dad told me that a lot of employees rather spend all the money than to save the money in the bank. Why? Because our inflation rate is so high that the authority do not want to admit and our bank fixed deposit is so low that whenever you save money, meaning you are losing the value of the money daily. So what's the point? A lot of people will think about that. The BIG question is again "What we can do about inflation??". Well, I do not know. I might post up something regarding this in the future. Well, till then, I will try to contain the situation so that it does not seems so bad.