Inflation and Wages

Apprently, there’s a lot I don’t understand. From the Malaysian Insider‘s Hafiz, Inflation is not really that bad, if there is no lag:

What many do not realize is that the general rise of price levels is as much as about the general rise of wage levels. As both factors try to catch up with each other, inflation really matters little in the long run.
 

Genuinely interested, what about the the difference between the wage increase and price increase? After all, in monetary terms, salary increases have not gone up that much, compared to the increase in prices in the past decade. The increase is not proportionate, whether or not in real or nominal terms.

Does this mean that wages is still catching up with prices? Does it really mean that all of us can afford that fancy candy still? Or does that mean that only some of us, perhaps Hafiz as well, can still afford to buy that candy, while others can’t any longer?

On the other hand, albeit in a foreign context, I read this column from Xpert HR on a wage/price spiral. Here’s another article on the payrise/living cost gap, again in a foreign context, but neither one talks about price stickiness and time lag or whatnot… I don’t know, I barely passed my A levels Econs, and perhaps this might explain my ignorance.

So forgive my lack of understanding and correct me if I’m wrong.

Digressing but slightly, here’s an interesting Citizen’s Blog from the Star on the recent statement by Deputy Finance Minister, Datuk Seri Ahmad Husni Hanadzlah,that RM120k is enough for retirees to live on (until death, of course).