Tuesday, January 22, 2008

Our Economy is doing well

Yes, the prices of most things have gone UP again!!

My daughter was just commenting about how the fishballs in school have shrunk in size, and now noodles only come with 2 (instead of 3) fishballs.

My favourite walnut loaf (bought from one of the hotel pastry shops) went up in price from $8 to $10. Since the price increase, I have decided to forgo having it for breakfast. Even Gardenia's milk loaf has gone up from $1.90 to $2.15.

Yesterday, I went with m-i-l to buy some dry goods. We paid double what we paid last year for some things - eg fish maw was now $48 per kg vs $30 last year.

I shudder to think about the prices of the New Year goodies I have yet to purchase.

Price inflation usually sets in when the economy is doing well. Market sentiments are good, everyone is bullish, property prices have gone up, so everything goes up in tandem. People were spending during the Christmas season like there was no tomorrow, and still are. Top-end restaurants were full. It was the first time I had heard car ads telling people to buy their loved ones a car for Chrismas!! People become more materialistic.

But did wages increase at the same rate as these price increases? I dont think so. Some teachers in my daughter's pre-school commented that they did not get an increment this year. Also, what happens to the lower income group in society? I am sure their wages did not rise in the same proportion as these price increases. They are the ones that suffer as a result.

Should we not be more prudent and not over-indulge? Spend only if necessary.(Makes me sound like a scrooge). I know everyone here is still bullish about everything. But stop! Look at the Dow. Our STI follows it quite closely, and the Dow has been hit recently. With the sub-prime mortgage loan problems in the US, I forsee a recession there soon, and it will move to our shores before we know it. So spend wisely, and save for the future!

5 comments:

Ling That's Me said...

Prices going up but salary not going up :(
I am also a miser, must spend wisely now and save up, especially on the thoughts that I maybe resigning should I have no maid.

Hazel said...

everything are sos expensive now..we need to be spend wiseely

Judy said...

I was just telling my assistant before Christmas that everything is more expensive. Because I do a lot of baking, it is more noticeable to me buying the same sort of ingredients such as butter, eggs and flour.

But then again, a lot of people do not look at prices when they shop. :)

nyumix said...

Every thing become more expensive every where. Baby milk price is ricing too :(

eastcoastlife said...

Basic necessities have gone up too. During grassroots meeting with residents, the rising prices is the top complaint.

Everywhere... everything is going up. I have always compared prices and do my planning when I shop. But still I'm paying 20% or more for the usual things I buy.

Cooked food prices are not spared. We eat more often at home, but when we have to entertain clients, it always pains me to pay much higher prices for the same portion of food, some restaurants have even reduced the portions or use lower grade ingredients because it is cheaper. cheh.