Inflation is certainly higher than that given by the Department of Statistics as I looked at my breakfast this morning.
Why the discrepency? It is because the Department of Statistics define Consumer Price Index (CPI) as an index that measures the price changes over time of a fixed basket of goods and services commonly bought by the majority of the households.
This basket of goods and services is not reflective of each household's spending. At best we can only call it a snapshot.
What about goods costing the same price but less in quantity? This is also considered inflation as you effectively need to pay more to enjoy the same quantity as before.
Back to my breakfast. My $0.70 noodles though cost the same, the amount given was drastically less by about 25%. So in theory, to enjoy the same amount as before I would have to pay $0.93. Then my soya bean milk drink has increased from $1 to $1.30. This is to say, I now need to pay $2.23 to enjoy what I used to enjoy at $1.70. A 31.18% increase!!!!
Faced with all these increases, I am thinking of getting some insurance for my son. An endowment might be good. It offers the chance to save for his future education (who knows how much higher it will cost then?) and to have some safety net in place :p
Hmm think I will need to spend sometime looking at the different products available. Any recommendations?
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2 comments:
get the 20 years limited payment premium product.
Pay 20 years and he covered for life.
Just imagine, 20 years old his coffin money already ready
do you want my insurance friend to contact you ? he is with prudential.
alternatively, i think you can ask the guy who wrote the 1st msg. being a cheapskate, sure sniff out lots of good deals for you. haha.
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