Academic Make-believe Inflation vs Real-Term Inflation

This inflation thing today is very bad for Singapore. The pressure-cooker is bound to explode very soon. Just watch.

There is always a huge difference between the academicians' look-good politically-motivated estimates of inflation and the real terms inflation.

The politically-motivated inflation rate of academicians has always been too conservative to the extent that the man (and woman) in the street will say they are talking through their nose. It never exceeds 4% per annum.

The real inflation is not measured by the make-believe inflation rate cleverly calculated and politically uttered by the brain-dead (PhD means Permanent Head Damage) academicians, especially those who are proudly wearing the title called "Professor".

The real inflation is experienced on the daily basis when you go to the coffeeshop and find out that your cup of coffee-black was $1 yesterday but $1.10 today. That is 10% inflation in real terms. Not 1.5%.

The real inflation is when you have been paying $2000 per month rental for your 4-room HDB flat last month but now have to pay $2400 per month for a 3-room HDB flat this month. That is 20% inflation in real terms. Not 3.8% in the watered-down calculations of the government.

Who gain from the inflation? The government, of course. Followed by the unscrupulous profiteering business organisations and property owners.

The coffeeshop owners used to be very satisfied to have a wife and happy to drive a Mercedes Benz in the past, but not so now. Now, they want to keep mistresses and girlfriends, and drive a Ferrari instead.

The property owners are worse than the coffeeshop owners. Their greed really knows no boundaries. The sky is the limit. The more they increase the rental the better.

And the property agents, who directly benefit from higher rental (the higher the increase the bigger their commission) are the main catalyst of this crazy rental increase every year.

So, moral of the story: Never trust the inflation rate stated by the government or any professor!


A-non-y-mouse.