Does inflation of 3.9% reflect the true situation?

DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw urges the Government to improve its system of calculating the Consumer Price Index (CPI), so that the true picture of inflation is reflected for both rural and urban areas in the country.

Dr Tan comments on the inflationary rate of 3.9% given by the Ministry of Domestic Trade and Consumer Affairs for January 2006 to May 2006 and feels that these may not reflect the true situation. Ordinary people believe that they pay much more than 3.9% for goods including foods compared with the same period last year.

Consumers find that the price of goods has increased more than 3.9% such as pork, petrol, diesel, even electricity which has gone up 12%. The price of a bowl of noodle has certainly gone up more than 10%. Homemakers who frequent wet markets, sundry shops ans hypermarkets know the truth.

We would certainly like to see the ministry improves the enforcement by its 2,174 officers to overcome irregularities. We would also urge it to improve its samplings and calculations of CPI, to reflect the actual situation in rural and urban areas. Its figures of transport index increasing by 12.8%, foods and non-alcoholic drinks 3.6% and housing, gas and other fuels 1.3% give rise to disbelief.