Moving the Consumers

Summary


THERE are arguments that the consumer price index (CPI), which hit its seven-year high of 4.8% in March last year, is finally tapering off and that the outlook is more favourable for 2007.

Many economists are projecting inflation rate to moderate around 2.5% this year (from an average of 3.6% last year) due to the high base in 2006 and lower oil prices. That will re-ignite consumers' spending spree, according to them.

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Moving the Consumers

But then again, that could only happen if consumers are fully rationale in their decisions with regard to their consumption plans. As was argued by economic scholars in the early 1990s, such argument ma...

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