Malaysians have, over these past few weeks, braced themselves for what seems inevitable over the months ahead – costs are going to rise whether we like it or not.

The main culprit for dearer goods will certainly be once again the price of commodities, thanks to all that cheap money that is sloshing around the financial systems the world over searching for higher returns rather than actual demand.

Such rising costs are already evident in Malaysia when under the strain of high sugar prices, the Government scaled back on the amount of subsidies it pays to keep the price of this commodity down.

That, together with the rising global commodity prices, have led to the price of bread going up. And next to see a price increase will be petrol as the Government tinkers with the fuel subsidy to lower its own bill.

The general expectation is that the subsidy bill the Government has borne will over time be reduced and Malaysians will be increasingly exposed to higher prices.

Higher prices will undeniably eat into disposable income, especially for the middle class who will be less eligible to benefit from any subsidies which will be earmarked for the poor.

They will undoubtedly add to the increasing bills middle-class families have to endure. The cost of living in cities has gone up and higher costs will shrink the disposable incomes of such families already burdened by a myriad of other expenses to run a household.

Therefore, what the Government does with the savings from slashing its subsidy burden will be important, at least for the middle-class population and indirectly for the economy.

For one, there should be some communication on how the money used to lighten the load on taxpayers and the public would be utilised.

The federal deficit would be an area that would benefit immediately from the reduction in Government expenses but the impact of households having less to spend would also be detrimental.

One way the savings could be used is to improve public transport in major cities. For years, residents in the Klang Valley have been told of an extensive expansion of the rail system but nothing has materialised.

Another way to put the freed-up money to good use is to generate more business activities in the economy.

Business investment, which is the lifeblood of any economy, is down.

Private companies are showing more reluctance to invest and maybe the money that would have gone towards subsidies in the past could be used to breathe life back into domestic investment.

Investing in productive capacity through matching grants or monetary incentives for businesses might be an avenue worth looking at.

Whatever the case, such savings should be put into use that ensures greater productivity and output by Malaysians.

People wonders how much more is it going to cost to fill up a trolley at the supermarket by the end of the year.