Inflation, as measured by the consumer price index (CPI), increased by 5.5 per cent in September 2011 compared to same period of last year. This is due mainly to higher costs in accommodation, private road transport and food. The figure was slightly better than the 5.7 per cent increase recorded in August.
The CPI for September fell by 0.2 per cent over August due mainly to lower costs of private road transport, clothing & footwear and “recreation & others” However, costs of food continued to rise at 0.2 per cent month-on-month. Costs of Housing and Heath-care rose 0.1 per cent each.
“On a month-on-month basis, the MAS core inflation measure (which excludes the costs of accommodation and private road transport) was 0 per cent in September 2011. On a year-on-year basis, the MAS core inflation measure was 2.1 per cent.” (Source: Department of Statistics)
It appears that inflation is moderating, if we exclude private road transport and accommodation. Still a concern is cost of food, which continues to rise on month-to-month basis. Can we see food prices coming down anytime soon? Have you noticed cooked-food prices in foodcourt? They were higher than a year ago.
Monetary Authority of Singapore forecast the inflation rate for the whole year at around 5 per cent, which is an elevated level. It expects CPI to ease and come down to between 2.5 – 3.5 per cent for 2012 due to slowdown in economic gowth next year.
Copyright © 2011, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.