The biggest threat now to national recovery is out of controlled inflation. Global inflation is hitting Malaysia also.
We're not just seeing normal good increase but basic necessity goods are increasing in price.
I would term basic necessity goods as bread and vegetables. I'm not even talking about increase in chicken meat, the increase in these basic necessity goods does not bode well for the economic recovery.
Even your local kopitiam is increasing teh tarik prices by 0.20 cents.
The Malaysian CPI (consumer price index) which consist of prices of a basket of goods is hitting around 3-4%. Food consists of the biggest component in the CPI at 30%. An increase in food prices across the board like now will push the CPI higher.
Generally this means, all investments that get lower than 3% returns also means your investments/money is being eroded and getting smaller in value.
