FMT LETTER, FROM durianpicker, via e-mail
I just would like to drop a brief comment on the article ‘Hard-boiled egg and inflation’ published today.
The writer has wrongly pointed the blame of inflation to the ‘excessive profiteering’ by the business owners.
The cause of the inflation is not as simple as traders raising price in the market. Under normal circumstance, consumers will ‘punish’ those greedy trader by patronising the competitors. But it is something else when traders across the board of all trades and businesses unilaterally raise the price.
There is a lot more to do with central banking policies (monetary intervention, exchange rate against major currency, interests rate, Forex reserve allocation….), ringgit valuation (trade
surplus/national debts, outflow of currency due to foreigner workers emitting money out coupled with outflow of Malaysian) and net negative FDI, just to name a few.
All the mentioned factors could affect the ringgit value position and money supply that will eventually affect the purchasing power.
Please give the traders a break, most of us are victims of inflation.
Hard-boiled egg and inflation