Meanwhile, 8.6 per cent of their income is spent on household goods, services and operation; 5.4 per cent on communication; 4.7 per cent on education; and 0.98 per cent on medical and health. Recreation and entertainment take up 8.1 per cent of their income, while miscellaneous goods and services use up 6.3 per cent.

The figures are based on the JPKE February 2008 consumer price index which monitors family expenditure and spending patterns.

However, the inflation rate in the country is below one per cent due to the decline in clothing, housing, education, communications, recreation and entertainment expenditure.

The country's inflation rate based on consumer price index was 0.3 per cent in 2007, 0.2 per cent in 2006 and 1.1 per cent in 2005.

However, countries in the region are grappling with inflation.

The United Nations food agency last Tuesday warned that the world faces a "silent tsunami" of soaring food prices and more must be done to help secure future supply. Crude oil is also trading at near record high prices globally reaching US$118 per barrel on Tuesday.

According to Food and Agricultural Organisation (FAO), food prices have increased over the years from over 120 per cent in 2005 to over 180 per cent in 2007.

Factors that led to the rise in global food prices (in the context of supply) were the gradual reduction in global food stock levels such as grains, export curbs like in Vietnam and India, escalating prices of oil and other production costs, and conversion of arable land to urban development.

On the demand side, the contributing factors were income effects in key emerging markets like India and China, biofuel boom that diverts crops from food production, and the role of speculation in financial markets on agricultural commodities.

In Brunei, the prices of food and non-alcoholic beverages have also increased over the years like milk and cooking oil, though the sugar price has been maintained.

For instance, cooking oil. Based on September 2007 to March 2008 official figures, the price of corn-based cooking oil rose from 20 to 91 per cent, while the price of palm oil-based cooking oil increased from one to 68 per cent.

Meanwhile, the price of condensed milk rose four to 29 per cent, sweetened milk went up five to 61 per cent, and infant milk powder saw a one to 17 per cent price increase. As for cocoa (Milo), its price surged seven to 27 per cent.

An economist said the high inflation rate worries other countries as it affects low-income earners, the economic growth, increases costs for producers and reduces competitiveness as prices are too expensive and delay the implementation of developmental projects. Besides food and oil prices, construction materials' prices have also surged.