The Star today reported that Malaysia’s inflation rate hit a 27-year high of 7.7% in June 2008, compared to 3.8% in May 2008. It almost doubled in a period of one month mostly due to the increase in petrol price.
This is generally speaking, bad news for most Malaysians as a high inflation rate can compound itself over the next few months and cause other side effects like increase in interest rates. If your salary does not increase by at least 8% this year, then you aren’t really getting an increase in income.
By taking a stroll in Mid Valley or One Utama in the weekends though, you may not see the effect as major shopping centers are still crowded. Perhaps less crowded than before, who keeps track anyways? I do believe that most Malaysians in Klang Valley have a high level of disposable income so this group may not be effected as mush as the lower income group in the early stages, however if the high inflation continues you’ll definitely feel the pinch.
The nasi lemak outside my office increase from RM4 to RM4.50.