Jihad on Inflation?

Can the public recalibrate their spending and consumption as Malaysia reported its highest food inflation in over a decade in May, with economists projecting further increase in food bills?

In May, Malaysia recorded a 2.8% year-on-year (y-o-y) increase in the consumer price index (CPI), which measures inflation. The rise was on the back of food inflation which rose to a new high of 5.2%, the highest since November 2011.

Within the sub-group of food, price increases exceeding 5% were for vegetables (8.1%), milk, cheese and eggs (8.0%), chicken (13.4%) and meat (9.5%).

Meanwhile, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz had said the consumption subsidy expenditure of RM77.3bil so far for 2022 is the highest subsidy in Malaysia’s history. The projected consumption subsidies cover petrol, diesel, liquefied petroleum gas (RM37.3bil), cooking oil (RM4bil), flour and electricity to reduce the people’s cost of living, and subsidy bills (RM9.7bil), excluding welfare aid from 2018 to 2022.

Although many have suggested the subsidies remain in the short-term but consumers need to re-balance their personal expenditure. Cooking at home and making diet changes may help. But what if you are already on rice and sardines, what more adjustment could you do unless you skip a meal? Others have suggested that a poor person takes on an additional job, and what if you are already on two jobs – cashier and night security?

Some say grow your own food like ulam, carrots, lady’s finger, cabbage or long beans. Still, others suggest rear freshwater fish like catfish. And if you only have a room in an apartment, how do you do all this?

Lifestyle changes can be for likes of former PMs but they don’t need to with all the wealth they have! It is the poor who will suffer.

On the supply side, the Government has to find solutions to our net food import of RM55-60 billion a year. More land has to be made available, and not confiscate or revoke temporary land titles of vegetable farmers, as in Perak.

Meanwhile, the Government has set-up a special committee to wage “Jihad” on inflation. Jihad normally ends up killing the jihadists and/or the persons intended to be killed. It is better to set-up a hara-kiri committee on inflation, that may actually reduce the number of mouths to feed?

References:

It’s inflation crunch time, Be ready to fork out more to eat out, Ragananthini Vethasalam, Iylia Marsya Iskandar, Wani Muthiah and N. Trisha, The Star, 29 June 2022

Govt sets up committee to wage “jihad” on inflation, FMT Reporter, 29 June 2022