Wow…this is of course expected, but to actually read about is scary and depressing. Those in banking industry are lucky to get 17% raise, plus 2 months contractual bonus. But there are many more people who will be affected. Government may have reduced the subsidy for petrol, but expenditure for welfare and other sector is increasing – poor people, education, diesel subsidy, agriculture subsidy, etc. In the end, the effect will be same. Previously, money spent on petrol, and the rakyat can go around working hard to make more money and help economy. Now, the rakyat have to pay more for petrol and practically everything else, while government have to prop the economy by providing aid to various groups, businesses and sectors.

Inflation is expected to at 7-8%, but in reality maybe double of that.

Anyone’s salary doubled recently? Or is it possible to reduce expenses by nearly 40-50%?

PETALING JAYA: The consumer price index (CPI) for May rose to a 22-month high of 3.8% year-on-year and economists expect the CPI for June to almost double.

JP Morgan Equity Research said core inflation, excluding food and transportation, had increased only slightly, while the main factor for the surge in the CPI was higher food prices.

However, it described the May CPI as “the calm before the storm” as it expected the June CPI to likely come close to doubling.

Factors driving the increase would be the recent rise in fuel prices after the Government raised the prices of petrol and diesel by 41% and 63% respectively, said JP Morgan.

Aseambankers Equity Research expected Malaysia’s monthly inflation rate to surge to 7.5% and 8% year-on-year in the June to December period, due to the higher fuel price and gas and electricity tariff hikes.

On the May inflation, it said the inflationary pressure was exacerbated by lack of enforcement by the authorities. It cited complaints by the public that controlled essential items like local super grade rice and flour were either not available or sold above their ceiling prices.

– The Star

Aiyoo…very sad to read about this! Babies also suffer since infant formula is quite expensive. I went for grocery shopping last week (first time after price hike) and found many things are more expensive. Even toilet tissue and tissue paper increased about 25%!

The idea of ration card as proposed by MHS Penang is worth considering. Maybe some sort of smart card that can verify the owner and remove chance of forgery. In this way, those who are below poverty rate can be helped directly.

Pricey infant formula forces substitute feeding

BUTTERWORTH: Some poor parents are substituting pricey infant formula with diluted condensed milk, rock sugar water, black coffee and plain tea, to feed their infants and toddlers.

Malaysia Hindu Sangam (Penang) Social and Welfare Committee chairman P. Murugiah said parents with low income of under RM1,500 and with an average of three children, have reduced feeding infant formula from five times a day to only twice a day.

“They substitute the remaining feeding periods with other drinks,” he said.

He claimed that poor mothers could not produce breast milk as they were undernourished. “The price of infant formula has gone up by about 80% in the last two years, with one brand rising from RM9 to RM16.50 per 650gm,” Murugiah said.

He said the sangam and a few other non-governmental organisations have been giving milk powder aid to at least 30 families since last year.  “We believe there are more families who need such aid,” he said.

Murugiah urged the Government to help set up a scheme to make infant milk more affordable to such families.

He said the plight of these families would worsen if the Government removed essential grocery items from its price control list.”Basic items, such as rice, sugar and flour should be made affordable especially to this group of people.

“The Government should introduce a ration card system, such as is practised in India, to allow the lower income group to buy essential food items at reduced prices,” he said.

source