Inflation : Malaysia.

It's affecting our life....

Have you ever come across your mind, inflation rate is actually something that is increasing in our daily life?

According to Malaysia CPI (Consumer Price Index), our inflation rate is actually expected to increase around 2-2.5% this year....

A Milo Ice, which costs average RM2.00 last year, has now increased to an average price of RM2.50. It is also because of increment of the price of sugar.

So, some of the consumer actually think that it is just an increment of around 50 cents in price, but if you actually calculate it by percentage wise, the price of Milo Ice has actually increased by a great 25 percent ! If consumers actually think deep, our salary increment doesn't even increase in such a great percentage ! 

Why does this happen? There can be a few reasons, it might be caused by the factor of production. As the price of raw material increases, it takes a higher cost to produce Milo Ice. So no doubt that the price of Milo Ice will only goes up, because the demand of sugar is getting higher. 

Here's one more example...

Petrol in Malaysia 

As the amount of petroleum is getting lesser and lesser...

The price of petroleum (RON97) has greatly increased from RM1.92 to RM2.80 since year 2008, which is a 40 percent increment. This is also another sign of inflation rate too. 

The government of Malaysia also spent a big amount of money to subsidize to petroleum, so by now our petroleum price here is priced at RM2.70. It actually lessen the burden to people and this can actually slower down the inflation rate in market, too. 

In conclusion, inflation is something beyond out of our control, we have to be smart and plan on our financial so that we can overcome inflation problems, because it happens everytime, around us. 

Thank you.

Written by:

Kang Min Sheng

SOURCES: http://en.wikipedia.org/wiki/Gasoline_and_diesel_usage_and_pricing#Malaysia , http://paultan.org/2013/05/23/ron-97-cheaper-by-20-sen-now-rm270/ , http://www.thestar.com.my/story.aspx?file=%2f2012%2f10%2f5%2fmetroperak%2f12126238&sec=metroperak