“While domestic inflation is expected to remain elevated for the remaining part of this year and early next year, it is expected to moderate in the second half of 2009.” She added the inflationary pressure was also from increase in electricity tariffs on July 1, with tariffs by up to 18% for households and an average of 26% for some commercial and industry users.
How do we cope? Money in bank will be effectively losing its real values, with return of around 3%. Cost of lending is predicted to be higher with the anticipated increase in BLR (currently 6.75%), thus investment in property will be costlier. Market is in bearish mood. Should we be a contrarion - go and pick up some good bargains? Maybe we are not, we are the wise one practising the theory buy low sell high, instead of following the herd mentality of buy high sell low. What say you - the investment guru out there?
http://biz.thestar.com.my/news/story.asp?file=/2008/7/9/business/20080709134238&sec=business
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