Wednesday, November 07, 2007

Day +490 : You increase the price, I make my own!

I am fine today.

My friend contacted me yesterday telling me his intention of acquiring an automatic bread maker to produce bread at home. This idea came to him due to recent 20 – 30 cents price hike of a loaf of bread. As he consumed 3 big loaves of bread per week, he has to spend additional 60 cents a week for the bread alone. He is not willing (不甘愿) to bear this additional spending.

My family consumes more bread than him, at least 5 Gardenia Bonanza Saver (big loaf) per week. A loaf costs RM2.50 before but now it costs RM2.80 - a 30 cents price hike :-( This translates to an additional spending of RM1.50 per week or RM78 per year!

There are two types of flour – general-purpose (GP) and non general-purpose wheat flour. The former is a price-controlled item while the later is not. A kg of GP wheat four costs RM1.35 while a kg of non GP costs about RM2.40. The white sandwich bread is made of non GP wheat flour. Unless, we use the GP wheat flour to make bread, else not much saving might be realized. But the question is can we make sandwich bread from GP wheat flour? I never try that before.

We always purchase bread loaf from a Chinese medicine and grocery store which gives 40 cents discount per loaf. So now we need to pay RM2.40 instead of RM2.10. Even though I have a Baba Arif bread machine at home, I am still will to buy bread loaf to avoid trouble of making it at home :-)

Anyway, additional RM78 for a year is not too much, isn’t it?

See you next post :)

2 comments:

Dennis Sek said...

I agree that one item by itself costing RM78 more a year may not be much but imagine 100 items, it would become RM7800! This is inflation at its best. It comes by the items collective and when it hits you, you will never know how you got caught out. Ever wonder why you are still wearing the 3 year old Suave shirt?

So, comments please by all as how to battle inflation assuming that your monthly income does not change much over the years.

David said...

You are right, Dennis. I start to worry where to get the additional RM7800 :-)

One way to combat inflation is to eat less and work more :-)

Since the infation involves multitude of items, neutralizing the one that causes the most impact might be a better solution.

As our time and energy is limited, handling an item that costs extra RM780 is definitely better that one that costs extra RM78 per year.