|Written by Arimi Sidek|
When Pak Lah government had given subsidies a no-no recently, they actually destroyed the General Price Index of our economy. The nearly immediate backwash effect was the increase in the price of nearly all goods and services in the economy.
It is because fuel IS the main source of energy.
This is what we called as a "cost-push" inflation.
Not only inflation, but we are now facing the highest inflation ever in 25 years, the rate is about 7 - 8 %. Meaning at present, if we have RM1,000 in hand, the "real value" of our money is being reduce to RM993 - RM992 in compare the previous month before the implementation of the hike took place. Full article
Written By kadayan chronicles on Sunday, 3 August 2008 | 08:05