New Government figures revealed 20 percent of Singapore’s poorest were hit twice by inflation on the first half of this year than more fortunate households.
Largely because of increasing housing and food prices, 1.6 percent inflation during the first half were experienced by the low-income group, compared to 0.7 percent for the middle 60 percent, and 0.9 percent for the top 20 percent of households.
But these price increases are well lower on the levels depicted a year ago.
The Department of Statistics said yesterday that the average household experienced 0.8 percent inflation rate during the first six months of the year, in comparison with last year’s 7.1 percent over the same period.
The rise in inflation rate experienced by the lower paid households is largely attributed to rising prices of basic commodities like power, transport, housing and food.
The consumer price index (CPI) in July, which is the main inflation measurement, was down 0.5 percent a year ago during the same month because of lower housing, recreation and transport costs.
The mild year-on-year fall on prices are anticipated by economists to change positive soon.
CIMB-GK is anticipating mild deflation for this year’s remaining months; its economist Mr. Song Seng Wun also stated that the decline rates are beginning to moderate in spite of the fact that prices are still falling year-on-year.
Singapore’s Standard Chartered Bank Economist Mr. Alvin Liew said the data indicated that there might be price pressure developing even as the year-on-year figures might still be negative towards a few months or more.
Chow Penn Nee, an economist of UOB Economic Research said that price increases seem to be increasing faster than expected.
“The CPI will probably register monthly increases throughout the year, with economic indicators gradually improving, and crude oil price and accommodation costs also rising in tandem.”