We each feel inflation differently and this ’Cik Kiah Index’ may explain why

KUALA LUMPUR, June 24 — To most people, Malaysia’s official inflation rate is a perennial mystery.

For example, a couple who stays in the upper-middle-class suburbs of Bandar Utama will likely have to pay more for dining out compared to someone who stays in the working-class parts of Cheras or Dengkil.

“So what this Cik Kiah Index does is give an alternative picture as to how inflation affects each of us differently. Knowing the inflation rate is actually higher will likely resonate better with people on the streets,” Zouhair toldTo formulate the CKI, we look at just crucial goods and services from this CPI basket that best reflect a typical bottom 40 per cent households and omit the rest.

One B40 household could feel the price pressure more if members are forced to eat out most of the time, compared to a B40 household that mostly cooks their meals at home. The personal inflation rate of the latter family would have fallen by three percentage points to 3 per cent. Suppose a household turns to plant-based meals and cuts back on fish and meat to reduce their budget, the CKI showed their inflation rate will drop to just 3.1 per cent.

A plate of chicken rice, for example, is now RM7.22 and RM6.20 in KL and Selangor respectively, a 6 per cent increase in April. Teh tarik price rose 9 per cent within the same period.

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