What is your personal inflation rate?

What is inflation?

From economic viewpoint, inflation refers to constant/persistent increase in general price level of goods or services in an economy over a period of time (Wikipedia, assessed on 3/2/2014).  So, in simple term, when the price of goods increase, the currency that we have (refers to ringgit) can buy fewer items as compared to before.  So, inflation on the other hand, reduced the purchasing power of our money.

As an average Malaysian, I feel the pinch when it comes to buying the groceries for the house.  Though I was single at that time, but still I can feel the pain whenever I withdraw RM100 to buy food, whatever left with me was just few 1 ringgit notes and few cents.  Then i look at my trolley, I was shocked because nothing much in the trolley! If a single person like me, can feel the pain of the price increase, what about those family of 3, 4, 5 or even more? what they eat? Last time, few years ago, sardines, anchovies, egg were the options for the poor to get their sources of protein.  But now, no more! Sardines has gone up and become the food for the middle income earners. Anchovies (ikan bilis) is far dam expenses. Egg? Hello, egg now become even expensive. So what do low income and poor people eat? Kangkung??? hihihi..sensitive...

I've read in the news today, Malaysia's inflation rate was only 3.2%? True? Because i think its more than that as we can see our daily or monthly expenses has gone up by more than 10%. So I think, personal inflation rate is much more higher than the country's inflation rate. Agree? I bet you are.  Talking about the expenses for food, utility, children's school expenses, transportation, easily it has increased by more than 10%.  Therefore, the value of our money now can only buy few goods or services.  So, INFLATION is like a biggest enemy to me!

Now, talking about the purchasing power back in 1993, when i studied in Liverpool and London, back then I have small business in catering. It was a joint business with my best friend Noor Ashikin. Well, we wanted to earn more money, so we did the catering business and the response was really really good and at one time, we have to reject few orders. Just imagine! Ok back to our main topic. So being in the catering business, every day I need to shop for my supplies. So I went to Safeway supermarket suitable for middle income as the prices is not that low as compared to Kwik Save which sells 'no frills' items and its dam cheap. But because Safeway is much more nearer to our hostel, so we choose to shop at Safeway.  So, as far as I can remember, with One (1) pound of money, I can buy I loaf of bread (cost me about 30 pence), One can of baked bean (cost me about 15 pence), I kg of flour (15 pence)  and six egg! Just imagine.  Such a hug purchasing power.  Well, you Malaysian might say, one pound we convert to malaysian ringgit is RM3.60 mah (that time, the exchange rate is one pound=RM3.60 -approximately). Now, Malaysian, if you live in UK, why bother to convert? We are looking at the purchasing power of the pound currency!. Now tell me back then in 1993, with RM3.60, how many and what food items that you can buy? One kg of flour is already RM1.80, so how much money you have left?Only RM1.80. What else can you buy? Bread already RM1.00 (i think!) and 80 cents? maybe some chocolates.  

Now, average inflation rate for UK from 1914 to 2013 was only 3.35% and currently the inflation rate hits the lowest at 2% (even 1.90%). So this is the thing, more purchasing power.  To be honest I am not convince that Malaysian inflation rate stood at 3.2%.  I think it should be more than that, looking at the general price increase in the goods and services.

Ok, how about UAE? The place that i live now? Well, according to the sources, as at December 2013, inflation rate stood at 1.4%. I believed that! Why? I tell you why.  I surveyed the job market in UAE, especially in Dubai and Sharjah, I noted company offers quite high salary package. An Executive Assistant (this job is like PA in Malaysia where you take care of the CEO/MD's activities, etc) average salary is around AED22,000 to AED26,000.  The exchange rate between Malaysia and UAE is not that huge and of course our currency is much more stronger. RM1=AED1.10.  Senior Manager, salary range from AED30,000 to AED50,000. Now lets talk about lower level job, receptionist! Don't be surprise! Average salary for receptionist is AED7,000 to AED10,000! So, its ok if their utility is expensive, for example, for a villa with 6 bedrooms, the water bills might fetch to AED600, electricity during summer might come to AED3,000, but during winter, much more lower as no aircond and fan, so bill might come up to AED1,000. So, the expensive price of the goods and services are compensated by the high salary! Things are different from Malaysia!

Ok, I think I have voiced out my concerns. So what is your personal inflation rate? Feel free to comment! Komen, komen, jangan tak komen