The Nasi Lemak Index: And What It Means
Did you know that Nasi Lemak prices have inflated a shocking 81% ever since 2011? That’s right, according to the DOSM’s 2024 Annual Price Consumer Index report, even our national icon dish isn’t prone to rising inflation, almost doubling in price!
You may also have heard your elders tell you about how cheap everything used to be “back in the days”, but we all know it’s just a fun poke at the younger generation. Because while our prices have increased, so has our income, and hence, real buying power!
However, the true question lies here: Is my income rising fast enough to keep up with price inflations? Well, the Nasi Lemak Index is here to help answer your question!
What is the “Nasi Lemak Index”?
You may have heard about the “Big Mac Index”, which compares the PPP (Purchasing Price Parity) across different countries. Essentially, a 50USD note can get you different quantities of Big Macs across the world, depending on the country’s currency strength.
The Nasi Lemak Index explores this too – but on a time scale. It compares the median Malaysian’s salary over the average price of a Nasi Lemak over time, making it fair to compare which year had the most expensive Nasi Lemak!
Ultimately, the Nasi Lemak Index is the number of Nasi Lemak you can buy with the median Malaysian income of that year. It shows the Malaysian’s true purchasing power, adjusted for inflation to view how far our money has come. Without further ado, let’s find out, shall we?
The Nasi Lemak Index over the years
| Year | Median Income | Average Nasi Lemak Price | Nasi Lemak Index (Income/NL Price) |
|---|---|---|---|
| 2024 | 2,745RM | 3.68RM | 745 Nasi Lemaks |
| 2023 | 2,602RM | 3.58RM | 727 Nasi Lemaks |
| 2022 | 2,429RM | 3.23RM | 752 Nasi Lemaks |
| 2021 | 2,256RM | 2.87RM | 786 Nasi Lemaks |
| 2020 | 2,076RM | 2.84RM | 730 Nasi Lemaks |
| 2019 | 2,442RM | 2.81RM | 869 Nasi Lemaks |
| 2018 | 2,308RM | 2.76RM | 836 Nasi Lemaks |
| 2011 | 1,500RM | 2.03RM | 738 Nasi Lemaks |
All data collected from the DOSM CPI Annual Report.
What does the Nasi Lemak Index prove?
Over the past 13 years, the Nasi Lemak Index has been steadily hovering around 730 to 830 (that is a LOT of Nasi Lemaks you can buy with your salary!). Yes, while our Nasi Lemak has increased 81% in price, the median Malaysian income has increased a staggering 83% too! This means our income is rising 2% above the rising costs of our favourite Nasi Lemak.
Even so, the Nasi Lemak Index doesn’t really reflect the TRUE buying power of Malaysians. All of us love different things on our Nasi Lemak, some like it simple with some ikan bilis and sambal, while others can’t eat it without adding that crispy chicken wing, or fish fillet! This can significantly change your personal Nasi Lemak Index, so remember to spend wisely on what you need and splurge only when you can afford it!
Nasi Lemak price is directly affected by the ingredients
Additionally, the average Nasi Lemak price is directly affected by the ingredients associated with it, such as coconut, rice, onions and more! For instance, India imported big onions, one of the biggest imports of Malaysia, in particular saw a 139.4% increase in price ever since 2011! This ingredient cost inflation most likely wouldn’t affect your other daily costs, like transport or WiFi, which are heavily reliant on other associated good costs.
One thing is for sure – as our income increases, so do the prices, even Malaysia’s iconic foods! Unfortunately it also shows that even while our income is being hit by global uncertainties (look at the dip in median income due to COVID-19 in 2020), prices will continue to increase regardless.
So no, your parents weren’t worse off than you, and you weren’t better off than them. It’s all dependent on the market conditions at the time, and the more important thing is to get financially prepared together, rather than squabble over your favourite food prices!
Tips to fight inflation
- Invest!
The only way to fight inflation is to earn more than the economy is eating away at your money daily, and that is through investments! By investing in good companies, your cash turns into assets that could outgrow the inflation rate.
- Diversify your assets!
While cash is a critical asset, it is also the most prone to inflation (since it literally devalues your cash without doing anything!). Make sure to diversify your assets to various platforms and avenues, and don’t put all your eggs in one basket!
- Have an emergency fund!
While investing cash into assets is great, having cash on hand during economic downturns is absolutely essential! Having an emergency fund allows you to strive on during economic uncertainty with confidence and do your best knowing you have a backup.
Concluding remarks
While it is easy to believe that inflation sets us back from our financial goals, with proper financial education and planning, it can be a shield against economic uncertainties and even present opportunities while others are fearful!
