Sunday, July 9, 2017

10% increase in Price

Cost of living
I went to a food place which was recently opened after renovations and proceed to the mixed vegetables food stall which I had not been going for quite a while during the renovations. I ordered my usual rice and mixed vegetables dishes. I gave the cashier the standard payment of $3 for a mixed rice set consisting of one meat dish and two vegetables dishes and to my surprise, the cashier asked for $0.30 more as the price of my order was $3.30.
I was shocked and asked what happened. The cashier told me that after renovations, the rental and associated fees had risen and they have not choice but to increase price. The stall attendant told me that the increase was mild. Mild? I did not think so. $0.30 on a base of $3 is 10%. And it is 10% increase in food prices! Actually, I have already known after renovation of most food places, prices will have to go north, but I know that some food stalls will rather absorb the higher costs to themselves and not to their customers. I am disappointed that my favorite food stall chooses to transfer the higher costs to customers instead.

In my opinion, inflation is really increasing. Water prices have gone up by 30% and so are the everyday basic necessities. This only means that I have to work harder in my wealth accumulation journey. Here, would just want to highlight to readers that for our investment to just break even, we would need our investments to grow by the same rate as inflation. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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