Singapore's inflation hits 25-year high of 6.6%

This striking headline of "Singapore's inflation hits 25-year high of 6.6%" from Channelnewsasia is going to give many people a jerk.

(source: www.channelnewsasia.com/stories/singaporelocalnews/view/330959/1/.html)

What are the implications of high inflation to us? I can think of a few.

1) Our money is getting "smaller".
In the past, a $10 note could purchased a lot of things. Now, having a simple meal at a fast food restaurant easily costs $10. Why is this so? Our purchasing power is shrinking.

2) Stretch your dollar.
It pays to do some homework by shopping around first before buying, especially for big ticket-items. The government has encouraged buying housebrands which are cheaper than branded. The quality is usually not compromised.

3) We have to save more.
Since the prices of almost everything have risen, our monthly salary does not rise as fast and as much. We need to save more by trimming our expenses and cutting all unnecessary spending. The money saved should be invested prudently to cover the shortfall.