Prices of Necessities May Increase by up to 60% Next Month

There have been a lot of factors that have led to an increase in the prices of goods.

The prices of all essential goods are expected to increase by up to 60% next month (June) due to the greed and need of traders as well as the implementation of the RM1,500 minimum wage.

A report by Utusan shared that Malaysians have already been feeling the hike since Ramadan, when prices of critical basic necessities such as meat, chicken and vegetables soared.

Even the Eco Shop chain, which previously charged each item at only RM2.10, has also announced a price increment to RM2.40 starting 1 June.

According to University Tun Abdul Razak economist, Prof Emeritus Dr Barjoyai Bardai, the rising prices of raw food items could result in a chain effect involving increases in the food and beverage (F&B) industry.

“The increase in the price of goods depend on demand and supply, not to mention the addition of a minimum wage of RM1,500 and causes purchasing power to increase, so traders take the opportunity to increase prices,” he said.

He also stated that the Russian-Ukrainian war has affected the import sector and resulted in less supply while high demand, an increase in purchasing power and an increased minimum wage will mean that traders will increase the price of goods, so consumers have no choice but to buy for survival.

What do you think about this? Let us know in the comment section.

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