Home purchasing

Consumers must use their purchasing power to minimize the impact of inflation

KUALA LUMPUR: Consumers must play their role and use their purchasing power to minimize the impact of inflation and ensure that they are not directly affected by it.

The Economic Analysis and Strategic Data Division of the Ministry of Home Trade and Consumer Affairs (KPDNHEP) said in a statement today that consumers have the right to choose and make purchasing decisions based on the price, quantity, quality and alternative offers available.

According to the statement, inflation is an increase in the price of goods and services over a period of time, and in order to be smart consumers, people need to change their behavior, especially their purchasing habits by prioritizing needs. about desires.

“Avoid panic buying and impulse buying because when many consumers do, the prices will go up. So calm down and think first before you shop and get rid of the habit of spending at will without planning and beyond your means.

“Savvy consumers must realize that they really have the choice and purchasing power to shape demand and supply in the market, which can influence fluctuations in the prices of goods and services,” a- he declared.

He also advised consumers to compare prices before making purchases through the PriceCather app introduced by KPDNHEP, which can help consumers compare the prices of more than 400 essentials.

The app is the result of the efforts of over 1,000 KPDNHEP price watchers who daily collect price information from retail stores across Malaysia including hypermarkets, supermarkets, convenience stores , grocery stores and wet markets.

The division also explained that there are 12 main groups in the Consumer Price Index (CPI) classification involving 552 goods and services, with 781 specifications collected each month from across the country from around 21,800. selected premises or stores.

Citing a report from the Department of Statistics Malaysia (DOSM), among the 12 main groups, there are three groups with the highest weight (weight value), namely food and non-alcoholic beverages (29.5% ), housing, water, electricity, gasoline and other fuels (23.8%) and transport (14.6%), which represent almost 70% of total household expenditure.

“This means that for every 1,000 RM you have, 700 RM will be used to buy or pay off the three things and the remaining 300 RM is income available for other uses or for saving.

“This weight indicates the tendency of consumers to purchase meaningful products or services. This means that the more a household spends on a particular item, the higher the value of its weighted percentage, ”he added.Bernama