Al-Hyari on Kode: Lower inflation doesn't mean falling prices
The news indicates that a decrease in the inflation rate does not necessarily mean that prices are actually falling; rather, it reflects a slowdown in their rate of increase, according to economic experts' interpretation. Inflation measures the overall change in prices over a certain period, and its impact differs between low-income households and high-income households; the latter are less affected by rising prices of essential goods. It also clarifies that there is calculated inflation based on systematic statistics, and perceptible inflation that consumers feel through their daily expenses. This perceived inflation depends on factors such as the type of expenditure, income level, and geographical location. The report emphasizes that inflation stability is a positive development, but it does not restore prices to previous levels. Restoring purchasing power requires improved wages, increased productivity, cost reductions, and ensuring that lower costs are passed on to consumers. Ultimately, the true success of economic policies is measured by improvements in household living standards, not merely by a decline in the inflation index.
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