Sep 24, 2008

Fuel Price Down, Inflation Rate Up

The damage has been done. Malaysian now suffer with escalating food and transport prices. A new record set in Malaysia, the Consumer Price Index (CPI) for August spiked to a 27-year high of 8.5%. This information is just too hard for me not to share with people. It seems that, with price of oil increasing in the international market, the subsidy supported by the government increases more and more.

The government will not be able to sustain the subsidy without widening the budget deficit. It’s already tanking at 8.5% and should the oil subsidy be maintained by year end, our budget deficit might balloon up to 9-10% of GDP at the end of the year, at least that’s what my source is telling me.

I have to say that now’s the time to take out your deposit and hedge everything: rice, sugar, milo, coffee, tea, mineral water etc. I know some of the items above a controlled item, but it seems the real prices always more than the government controlled price.


You can also go to your barber and hedge prices of haircuts, your school bus operator, your tuition center for your kids, your motor oil change mechanic, your mechanic for car maintenance and the monthly bills. Why don’t you try hedging with your Nasi Campur and your Roti Canai. For all you know they might agree and you could save a bundle in the future. Should we suffer like this? Most of the Malaysian has been living quite comfort, and the time now is for us to join the third world nation.


VaLaiYa said...

HAHAHA. "ubah gaya hidup" la brader.

Puravin said...

Surely we can live quite comfortably if our resources were managed well.....