Inflation... A 27-year high
The Abdullah Administration scored a new record for Malaysia.
The Consumer Price Index (CPI) for June spiked to a 27-year high of 7.7%. Should we declare a national holiday to celebrate a No Buy Day?
For comparison, this figure is slightly more than double the May CPI of 3.8%, The Star reports, quoting figures from the Statistscs Department..
The 7.7% is also the highest since April 1981, during the time when Dr Mahathir first took over as the PM. Then the CPI was recorded at 10.8%.
And hold on, your financial woes ain't over yet. Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad said the inflation would probably remain at 7.7% for July because the impact of increase in the electricity tariff will kick in this month..
The culprit? The government blamed the substantial rise in the price of petrol and diesel -- announced by the Government itself beginning June 5 -- as the main reason for the surge. Another hindsight and another knee-jerk?
Voila. To Joe Public, it just means the ringgit is shrinking further as buying power contracts immensely.
I'd better get offline. My eyes hurt and migraine is setting in.
Comments
And BNM may raise day borrowing rate to three seventyfive tomorrow which means higher cost of new businesses.
So how 'growth and social net'?
The economic council should look hard and serious at the HK free enterprise model ....
....as well as quickly execute top-priority policies shorne of racial prejudices for the SMEs which form ninety percent of our manufacturing base. The day that an SME has to go around begging for capital must end as quickly as the day an entrepreneur has to pay undertable money for corrupt civil servants to approve permits, licenses, and site fees. End this bloody nonsense.
Posted by: Neil![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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July 24, 2008 10:42 AM
either bank negara will have to let interest rates climb higher or let the ringgit appreciate at a faster pace to fight inflation.
Posted by: kent![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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July 24, 2008 02:23 PM