Are Brunei prices lower or not?
It was interesting that BT picked up the arguments about the recently released Consumer Price Index (CPI) which our Economic Planning and Development Department (JPKE) recently released. The CPI is showing signs that it is lower and everybody assumes that with lower CPI, the prices should be lower. But for some prices, it is not. This would make a great Economics A Level or first year undergraduate Economics exam question. I am not trying to answer on behalf of my ex colleagues at JPKE but just trying to bring an understanding what CPI does. The consumer price index is probably one of the most important releases of economic data. The CPI has a direct effect on nearly every person in the country, and in most countries, it is widely used, probably as an indicator how the political leaders are managing the economy, by trade unions in negotiating their pay, by companies in estimating the business growth etc. Less so in Brunei. Most people brush off the CPI but by better understanding the w...