Photo by moriza

Photo by moriza

I was looking at Adrain Khiat’s column in the straits times this morning. Wow, he made it to the newspaper already, especially after he revamped his blog. I wouldn’t say I’m a fan of his, but I do read his posting on and off. I stopped because there is just to much negativity in the comments. Might want to visit it again soon :)

Anyway, he mentioned something about child education and how inflation can cause the tuition fee for local universities to rise up to an astronomical sum, 20 yrs later. Somehow, I caught on to the idea of inflation after reading this.

I though that yes, inflation will cause the price of things to go up. But wouldn’t inflation cause your salary to go up as well? Basically, the price of goods and services go up because the cost of producing these goods and services go up as well. Your salary will form part of the rising cost of these services. I think the bugbear here is not inflation per say, but rather the fact that while your salary increases, it might not rise as high as the cost of goods/services sold. If that happens, then it’ll be a problem. You just have to look at the percentage rise in median salary vs the percentage rise in HDB flats over the last 20 yrs to see how HDB is still very ‘affordable’ to everyone. Read more…