Wednesday, July 9, 2008

Inflation In Malaysia Only at 6%? True or Lies?

I find it weird when government said that our Inflation rate in Malaysia is under 5% and now Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz, announced that Inflation to exceed 6% in June 2008. 6% or more, this is kind like a safe statement?

Is 6% a realistic figure? Can some experts in the economic explain this to me?

Here is the list of thing that do not increase by just 6% and average of those increase by double digit. I'm going to say this as Before (2007) and After (2008)
  1. Rice: 100.503% increase. (Thai King: Before=RM 19.90 per 10kg, After=RM 39.90 per 10kg)
  2. Petrol: 40.625% increase (Before=RM 1.92 per litre, After=RM 2.70 per litre)
  3. Diesel: 63.291% increase (Before=RM 1.58 per litre, After=RM 2.58 per litre)
  4. Nasi Lemak: 20% increase (Before=RM1 per packet, After=RM1.2 per packet)
  5. Economy Rice: 14.29% increase (A typical 2 meat 1 vege, Before=RM 3.50, After=RM4.00)
  6. And more and more .....
More on food price increase. Information below, taken from The Star.

I did not see anything that less than 6%, ya ya Teh Tarik increase is 9.09%. But yet all the above increases do not translate to 6% or more (when this statement is made, I expect it would be around 6 - 7 % but the above looks very much more than the statement "6% or more") as mentioned by Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz, so please the economics expert out there, please educate me.

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