Monday, June 23, 2008

Inflation Rate Not A Reflection of Reality

I have argued, and so have most of my opposition colleagues that the Government's inflation rate calculation is faulty and needs to be desperately revamped as it has failed to reflect the real world.

Throughout the campaign period, we have ridiculed the 2% inflation index as announced by the Government. Can you believe that inflation is only 2%?

Today, to a supplementary question posted by BAGAN, the Second Finance Minister, Nor Mohamed Yaacob admitted as much that the inflation index published by the Government does not reflect reality. He announced that the current make up of the inflation index is being revamped to better reflect what is on the ground.

It's a big admission, for the Government has been measuring its "excellent performance" and praised the health of the economy by quoting the "low" inflation index. Will try to extract the Hansard text tomorrow.
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