Anyway, it is futile to worry about the impact on prices of goods because the prices of almost everything have been increasing on a regular basis. Expect it to continue in the coming years.
With GST around the corner, it will definitely increase the cost of doing business. Any form of tax is bad for businesses, bad for consumers, but good for the government. Expect price increases.
There's also talk of water & electricity tariff hikes. So, prices increase.
Minimum wage, which has pushed up wages across all levels, have also contributed to the increase of prices. Unfortunately, the rate of decline of purchasing power is much higher. Since businesses need to pay more for salaries, prices increase.
It would be prudent to keep an eye on the economy, both domestic as well as worldwide. Don't get distracted by petty issues and lose your focus on the economy. It's always the economy.
Below is an interesting video on economic inequality. It's an important issue in every society, which can even make or break governments & countries. It's something they talk about but often lack the willpower to solve. Usually, it takes a revolution to change things as history has shown. Often, politicians and the ruling class would rather distract the people with other issues.
PETALING JAYA: The price of RON95 petrol and diesel fuel will go up by 20 sen effective midnight.
The new price of RON95 petrol will be RM2.30 per litre while diesel will cost RM2.20 per litre.
The Domestic Trade, Cooperatives and Consumerism Ministry said the Government had decided to reduce the current fuel subsidy by 20 sen in keeping with its subsidy rationalisation plan.
“This move is in line with the subsidy rationalisation plan by the Government to ensure that the country’s finances remain strong,” the Ministry said in a statement on Wednesday.
It said the Government also aimed to curb the smuggling of fuel and also to ensure that the current subsidy is not misused.
“The Government will continue to implement the subsidy rationalisation in stages so as to not burden the lower income group.
“We understand that fuel price increases will affect the economy and the people. Therefore, we will continue to provide incentives to the lower income group to alleviate their burden,” said the Ministry.
The current unsubsidised market price for RON95 is RM2.58 per litre while diesel is RM2.52 per litre.
Petrol and diesel prices were last increased, also by a 20 sen margin, on Sept 2 last year.
- http://www.thestar.com.my/News/Nation/2014/10/01/Petrol-Price-increase-20-sen/
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