Saturday 27 September 2008

INSANE: Price of Goods to go DOWN!

Sounds like good news: Prices of sundry goods to drop next month in tandem with fuel price cut. Was beginning to wonder if this will ever happen and here is Federation of Sundry Goods Merchants Associations of Malaysia chairman Lean Hing Chuan saying that it will. But lets do a simple analysis over a statement from him: Merchants cannot immediately reduce the price of their goods as the items were bought when the petrol price was high.

Oh boy. This doesn't sound right. I remember that merchants (I'm not saying all, but the majority. I'm sure there are honest traders around.) couldn't wait to increase their price the last time (even with their old stocks) but when it comes to price reduction... Nothing happened when the Ringgit appreciated above the previous pegged RM3.80 to a US$1 but when there is a reason to increase price of goods... That's life.

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