When Deputy Prime Minister told Malaysians last week to live within their means to cope with price hikes all round, it left one consumer representative baffled.

Asked to comment, Federation of Malaysian Consumers Associations (Fomca) communications director Yusof Abdul Rahman said: "Yes, we have to live within our means, but those in the lower income groups mainly earn RM900-1,000 a month. How can they live within their means when the prices of most things have increased?

"It is worse if they live in urban areas. The living cost is so high that it is almost impossible for them to make ends meet."

Yusof said Fomca has received numerous complaints about increasing prices since the government announced a pay rise - up to 35 percent - for civil servants that took effect in July.

Fomca has mounted a price-monitoring campaign, which has found two stages at which prices of goods are increased.

"The first stage is at the manufacturers' level. This applies for items like canned food. The other stage is at the middlemen's level which affects fresh vegetables and fish," he said.

The findings of the campaign will be delivered to the government, to supplement efforts by relevant enforcement agencies that are monitoring the situation.

Yusof noted that those from the middle income and higher income groups "will somehow manage because they shop in hypermarkets which can give them excellent prices".

"But low-income earners have to shop at their local grocery shops, which is why they feel the pinch," he said.

Retailers generally mark-up prices by at least 10 percent, in order to cover costs involved in bringing goods to customers.

Given the difficulties faced by the low-income group, Yusof was of the view that the workers' unions are justified in demanding a minimum monthly wage of RM900 to cover the rising cost of living.

Others affected by the 'tighten your belt' directive are pensioners, contract workers, daily-paid workers and those who do not earn a fixed income.

'Anxiety on the ground'

Consumer Association of Subang and Shah Alam president Jacob George pointed out that, generally, those in low-income groups tend to have larger families.

"More often than not, they have to rent houses and have to pay other monthly bills (electricity and water, for example), leaving very little for proper food," he noted.

"The increase in daily essential products will affect their diet, especially those with growing children. There is a lot of anxiety on the ground. We're no longer looking at just at the price of fish and chicken, but at basic necessities like flour and cooking oil."

Asked how the government should intervene, he said: "My appeal is that some kind of tax exemption be given on food and gas for those (worst) affected, as is done in countries like Britain and Russia.

"This exemption is crucial for those in the lower income group, because of the income disparity between them and the higher income group," said Jacob.

"The very segment of the population that needs to be helped out is the one that is suffering the most. We've seen many incentives being given to the corporate sector in Budget 2008, but there was nothing for these people."

However, Deputy Domestic Trade and Consumers Affairs Minister S Veerasingam claimed that the public has been "wrongly informed" about price increases.

"There's no price increase. All controlled items are sold at the price recommended by the government," he said when contacted.

He explained that the price of items like Milo and milk have increased because the global price of ingredients has gone up.

"However, if we look around, the prices of things here are still cheaper than other countries."

Veerasingam said consumers should do their part by informing the relevant authorities if they come across retailers who have increased the price of controlled items.

Explaining the steps taken by his ministry, he explained: "Since Sept 13, we have conducted 125,122 inspections.

"We have fined 325 persons - 53 wholesalers and 272 retailers - (who will have to pay a total of) RM47,550. We have also confiscated goods worth RM85,887 from errant retailers."

Yesterday, malaysiakini reported that retailers have seen prices of several items go up in recent months, leading to customers switching to lower-priced brands or generic goods.