I have been slacking off a little bit. My models have not been updated as frequently as it should. Reason is, one fine March day, something wiped the models out. Electrons arranged neatly disintegrated into disorder, destroying the microfoundations (heh!) of my models. I have backup files, but updating them is a tedious exercise. So, my projections, especially […]

January inflation clocked at only 1.0% from a year ago while in December it was 2.7%. That was a pretty drastic slowdown that I bet someone will cry deflation wolf somewhere soon. The cause of the slackening is easy to explain. It is unambiguously due to the drop in retail petrol and diesel prices. RON95 […]

There is a curious logic going in the market and I am guilty of it myself. I only realized of my contradictory views only after I read a view claiming deflation encourages consumption spending (Austrians…) and asked myself a few questions about inflation/deflation. To properly highlight what I see as a contradiction, answer the following […]

The Big Mac Index is one of those funky things in the world of economics that a lot of people think they know about it, but they actually do not. The New Straits Times on Saturday featured the  Index in a big way to show that Malaysia has the third cheapest Big Mac in the […]

I have read in the media of allegation that the weaker ringgit is contributing to the rising inflation in Malaysia.[1] The allegation makes sense. If Malaysia imports stuff, which the country does, and if the ringgit gets weaker, which it has (at least against several currencies and namely the US dollar), a weaker ringgit should […]

[2714] Look at those prices!

The government cut subsidy off gasoline and diesel back in September by 20 sen per liter, resulting in a cool chart: I am just showing this because it is an awesome chart. Price index can be boring because nothing really happens. In September, well, it jumped. Inflation on yearly basis had been creeping up slowing […]

The CPI for March was released yesterday. Malaysia’s consumer price index grew by approximately 1.6% from a year ago. It is slightly higher than the inflation rate recorded in February, which was at about 1.5% from a year ago. You can see which components contributed to the higher inflation, as well as the price behavior […]

I learned a few things in Indonesia. One of them involved the discussion of cutting down the zeroes in the Indonesian bills. Prices of goods and services will be adjusted accordingly as well. Right now, the Indonesian currency the rupiah is denominated in the thousands and it is quite common to round up any price […]

I do not understand the intricacies of Japanese politics. I simply do not follow it closely. But I do know that Japan can play a significant role in Asia, if it finally decides to take up that role, which it has not under the uncertain leadership of the Democratic Party of Japan. The DPJ wanted […]

I have argued before that too many disbelieve the CPI inflation because they do not understand how inflation is measured. Some do not get the fact that CPI inflation is the change in price level and not the price level itself. Too many think that it is impossible that inflation is really that low in […]

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