The inflation has bloated to a seven-year high last month at 4.8%. Fuel hike is one main reason, public utilities’ rising tariffs another.
Banks are expected to raise interest rate to curb and balance the sudden spike of inflation. For your information, the real rate of interest has been negative since August 2005. In short, you are losing money in your fixed deposit account to inflation alone.
The consumer price index (CPI) of 4.8% in March was significantly higher than 3.2% in February, which was already felt by many as quite high.An 18% jump in transport costs in March fuelled the higher CPI, according to a statement from the Statistics Department yesterday.
For the first three months this year, transport prices rose 12%, accounting for almost half the increase in the CPI during the quarter.
2006 seems to be a bad year to save money in banks…
By the way, you might want to cut down on your small onions and garlics intake, it just shot up 18.7% and 8.2% respectively. For more effective countermeasures on Evil Inflation, adjust your lifestyle according to these statistics.
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