Wage hike = inflation, salary increment no inflation
The workers are scratching their heads again. Why wage hike will lead to inflation and salary increment will not? Very simple. The answer was given in the ST a few days ago. Singapore’s inflation rate hit a high of 5.2%. But this inflation rate will not affect the workers because hor, it only affects the rich who buy expensive cars and pay high COEs or expensive multi million properties. The inflation is only at the high end. There is no inflation at the low end as workers did not buy these big ticket items, or at least workers are not affected. Heng ah!
But when there is a wage hike, all the workers will be having a spending spree at their favourite food courts or hawker centres, and the prices of food will shoot up, leading to high inflation. Some will spend like a king in Batam, Bintan and JB. Now I am scratching my head also. This logic sounds right or not?