Fighting inflation

This week, Channel NewsAsia reported that the price of a cup of coffee is expected to increase soon due to the rising cost of coffee beans. Having argued that inflation is heading higher for several years now, this has not been a surprise to me. What caught my attention in the CNA report was this quote:

Coffee drinkers appeared resigned to paying more for their daily cuppa. Insurance agent Dennis Lim might switch from drinking premium coffee at high-end joints to cheaper alternatives if prices go up steeply. "We don't have much choice. We need drinks to go with our food when eating out," said the 40-year-old.

To me, such an attitude is too passive to have in the face of rising inflation. To fight inflation, we need to send signals to the market that there is a limit to our tolerance for higher prices. And we do that by adapting our behaviour as prices rise. For example, using the above case of buying drinks, I know of very well-to-do people who bring a water bottle out during lunch, because they refuse to pay inflated drink prices at coffee-shops.

By adjusting our spending patterns, we can signal to retailers our limits. In turn, this will eventually allow landlords to get the message that they can't keep raising rents. We should start voting with our wallets and stop acting like sheep.