First of all, the prices of rice took a double-digit lift-off when the Federal government decided to let the imported rice prices to tread along the market equilibrium line.
Secondly, Pak Lah would put in place a new mechanism to subsidise the fuel. According to Pak Lah, the proposed structure is not only less burdensome to the government, but also fairer to the rakyat. The proposed fuel subsidisation scheme is still veiled - but the market hotly speculates that our fuel prices are set to move up.
Inflating prices of this magnitude have taken the NIG (negative income growth) groups to the greatest hit.
With our official inflation rate at 3.1%, Malaysia is heading towards negative real interest rate zone. And coupled with the meagre wage rise, a lot of us are fast turning into NIG!
So far, I have seen no light at the end of the tunnel!
The above picture is by courtesy of United Daily.