Inflation is gravity defying

The official CPI for Singapore for last few months was hovering between 6.5% to 7%. But we all know this is certainly not reflective of real inflation. Just take a look at the price hikes of some common food items.

For example, a bowl of noodles at a hawker centre or food court is up from $2.50 to $3.00, a whopping 20% increase attributed to higher commodity (grain) prices. Similar, the price of bread has also gone up.

But do you know, wheat and corn prices have come off some 40% since then? Do you really think what has gone up will come down? I guess you and I know what the answer is.

Therefore my friends, inflation can only go one way - up. Only our salaries can possibly come down.