Selangor Journal

No difference in city and rural inflation rate

SHAH ALAM, AUG 4: The five percent inflation rate in the urban and rural areas, in March this year, had made no difference to the price of goods in both areas.
The Statictics Department Director-General, Dr Mohd Uzir Mahidin said, rural urbanisation had reached 75 percent and the price of goods in both urban and rural are similar to the rate of inflation, which depreciated to an average of 4.2 percent in the first quarter of this year.
He said the situation was due to the comprehensive information technology network and better connectivity between the urban and rural areas.
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“The inflation rate from January to March this year depreciated to 0.1 percent compared to the average difference of 0.4 to 0.5 percent in the past three years.
“The price of the Tarik in Putrajaya and in the villages are the same,” he said as quoted by Sin Chew Daily.
Uzir said the rapid inflation rate increase in that period was due to unalcoholic food and beverages (4.2%), transportation (16%) and leisure and cultural services (3.2%).
Meanwhile, in the rural areas, the most significant increase was unalcoholic food and beverages at 3.7%, transportation (17%) and leisure and cultural services (2.7%).
He said, beside house rental and transportation, the price of services and goods in the rural and urban areas are the same, particularly IT products and services.
“In the past, people in the villages run their businesses based on service, but now everybody wants to look for extra income to do things they like, especially traveling.
“The biggest expenses for urbanites are for transportation and accommodation while people in the villages spend the most on necessary goods,” he said.
The inflation rate in the first quarter this year increased by 5.1 % compared to the same period last year, attributed to the huge price difference of oil in March this year and March 2016.
“Oil price in March 2016 was RM1.60 but it increased to RM2.29 in March this year, so that is a big difference,” he said.
He said, the inflation rates for the first five month this year are 3.2% in January, 4.5% in February, 5.1% in March, 4.4% in April and 3.9% in May. The rate was declining due to falling oil price.

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