After the recent price hike in raw ingredients, the prices of dry goods and clothing are now expected to increase up to 10% due to higher costs faced by manufacturers and coupled with international trade issues, says Datuk Ameer Ali Mydin.
In an interview with Sinar Harian, the Mydin Mohamed Holdings Bhd (Mydin) managing director said the dry goods include biscuits, sardines, the popular drink Milo and many others.
“We were told by many manufacturers that products will increase due to certain reasons such as the prices of raw materials and logistics costs having increased,” he said.
He also said clothing prices were expected to increase by 10% to 15% with new incoming stock, while the prices for school bags and school shoes have already increased.
Meanwhile, the good news is that prices of wet items are expected to stabilise.
“For wet goods, they have their own supply chain for instance if there is flood. All this could push the prices up,” he said.
He also said that the price hike is not something that the government can control, as it involved international trade.
“We have to be wise, smart to find products that we can afford. Because you have no choice. The product price will increase, your salary does not increase. Even if your salary increases, it is 3% to 5%, but the product price increases by 10%,” he said.
Meanwhile, Sinar Harian also quoted consumer financial expert Prof Mohamad Fazli Sabri saying that rising goods costs of around 10% to 30% would affect household spending.
He said that a family usually spends around RM2,000 a month expected to now spend an additional RM600 monthly or an additional 30% more.
While income remained stagnant, Fazli suggested that households change their lifestyles and cut down on non-essential spending to cope with the price hikes. He also suggested that people explore the gig economy or digital economy as a way to supplement income when purse strings remain tight even after prudent spending.
In addition, he also hoped that the government would be firmer in enforcing monitoring towards price hikes and to help the public who are affected by the rise in living costs.