[News] Singapore's Inflation

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June's CPI rose 1.3% from last year; inflation to stay high for rest of 2007: Analyst

Singapore's inflation accelerated to the highest in a year last month as holiday travel became more expensive and car prices rose.

The consumer price index (CPI) rose 1.3 per cent from a year earlier, after gaining 1 per cent in May, according to the Department of Statistics yesterday. Prices fell 0.3 per cent from May.

In the first six months of this year, consumer prices were 0.8 per cent higher compared with that of a year ago, the bureau added.

Rising wages and expanding payrolls amid the longest economic expansion here since 1991 have encouraged consumers to spend.

Inflation pressures are likely to intensify after the goods and services tax (GST) increased this month and electricity tariffs were raised for the third quarter.

"We expect inflation to stay fairly high for the rest of this year," said Mr Joseph Tan, a Fortis Bank strategist. "Retailers have more pricing power with the economy doing well."

In April, the Monetary Authority of Singapore (MAS) reaffirmed a three-year policy of allowing the local currency to strengthen, a move that has reduced import costs and helped keep inflation within the central bank's forecast range.

MAS has sought a "modest and gradual" appreciation in the Singapore dollar since April 2004 to curb inflation, which it expects to be at least 1.5 per cent this year.

Food prices, which make up 23 per cent of the index, rose 1.7 per cent last month from a year ago, following May's 1.4-per-cent increase.

Transport and communication costs, the second-biggest component at 22 per cent of the index, climbed 2.8 per cent last month from a year earlier.

Housing costs, the third-largest component of the CPI, slipped 2 per cent from a year ago, after a 1.1-per-cent slide in May.

Recreation costs, which include holiday travel, gained 3.3 per cent in June from a year ago, while prices of clothing and footwear dropped 0.2 per cent from a year earlier. — Bloomberg

Source: http://www.todayonline.com/articles/201833.asp

via : vrforums.com

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Singapore Expects Inflation to Rise

Updated: 3:32 a.m. ET Aug. 27, 2007
SINGAPORE - Singapore expects inflation in the second half of this year to be higher than the first half amid strong economic growth, a senior official said Monday.

Last week, the city-state reported that consumer prices rose at their fastest pace in 12 years in July as soaring rents combined with the impact of a sales tax hike.

"In the last 16 quarters we have been enjoying highly robust growth and so one would expect inflation to pick up, and indeed it well may pick up," Trade and Industry Minister Lim Hng Kiang told Parliament. The economy has grown more than 6 percent over the last three years.

He said the government expects costs in the second half of this year to be higher than the first six months, partly reflecting global inflationary trends.

The consumer price index rose 2.6 percent in July from a year earlier, the fastest increase since January 1995. Prices rose 1.3 percent in June from a year ago.

"Overall, we still look at an inflation forecast of between 1-2 percent this year, which is a little higher than our previous years but definitely still very reasonable," Lim told lawmakers.

"In recent quarters, we have seen increases in property prices and rentals as well as wages. We have to maintain vigilance over our costs as excessive cost increases will dampen our growth prospects," Lim said.

The increase in the goods and services tax to 7 percent from 5 percent July 1 was widely expected to boost food and transport prices, and July marked the first month that a long-watched surge in real estate prices finally hit headline inflation.

Lim was responding to questions by parliamentarians on the impact of recent increases in prices, wages, and rentals on the city-state's attractiveness to foreign investors.

Singapore's housing prices have surged in recent months as a boom in the luxury segment began to filter into the mass market.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

via : edmw hwz
*dreamer75

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Dec. 24 (Bloomberg) -- Singapore's inflation accelerated in November to the highest in 25 years as consumers paid more for food and transportation.

The consumer price index jumped 4.2 percent from a year earlier, after gaining 3.6 percent in October, the Department of Statistics said today. The figure, the highest since May 1982, exceeded the median estimate of 15 economists surveyed by Bloomberg News for a 3.8 percent gain. Prices rose 0.6 percent from October.

The Monetary Authority of Singapore expects consumer prices to rise next year at more than double the 2007 pace, suggesting it will allow the currency to strengthen further to curb consumer price gains. The central bank in October said it would allow a ``slightly'' faster appreciation in the Singapore dollar to damp decade-high inflation by making imports cheaper.

``We are seeing broad-based increases in inflation, not just in one or two items,'' said Kit Wei Zheng, an economist at Citigroup Inc. in Singapore. ``We'll see more inflation pressures in December and January, and the bias is towards further appreciation in the currency.''

Policy makers expect inflation in 2007 to average about 2 percent, up from a previous range of between 1.5 percent and 2 percent. Consumer prices may rise between 3.5 percent and 4.5 percent next year, the central bank said.

Currency to Strengthen

The Singapore dollar has gained 5.4 percent this year. The central bank seeks to keep the dollar from rising or falling outside an undisclosed band based on a basket of currencies of the city's biggest trading partners.

The central bank has sought a ``gradual and modest'' strengthening in the currency since April 2004 and said Oct. 10 it will ``increase slightly the slope of the policy band.''

Food prices, which make up 23 percent of the index, rose 5.2 percent in November from a year earlier, following October's 4.3 percent increase. From October, food prices gained 1.1 percent.

Bus fares have increased in recent months, while the government has also raised road tariffs for motorists, resulting in an increase in transportation costs.

Transport and communication costs, the second-biggest component at 22 percent of the index, climbed 5.6 percent in November from a year earlier. From October, transport and communication prices rose 0.1 percent.

Inflation Pressures

Housing costs, the third-largest component of the consumer price index, climbed 2.9 percent from a year ago, after a 2.3 percent gain in October, today's report showed. From a month ago, housing prices rose 0.7 percent.

Recreation costs, which include holiday travel, gained 4.1 percent in November from a year earlier and rose 0.6 percent from the previous month. Prices of clothing and footwear rose 1.4 percent from a year earlier and gained 1.8 percent from October.

Inflation pressures are likely to increase as companies pass on rising business costs, economists said. Average monthly wages climbed 6.9 percent last quarter, after rising 8.5 percent in the previous three months, the government said this month.

``Inflation expectations may become more entrenched in wages as employees demand higher pay increases to keep up with rising prices,'' Zheng said. ``At some point, businesses may have to pass these costs on to consumers.''

via : http://forums.hardwarezone.com.sg/showthread.php?t=1821764

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retrenchment exercise again soon.. economic lifecycles.. higher business costs to pass down to consumers will not help.

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SINGAPORE : Households and businesses in Singapore will have to pay more for electricity from next year.

SP Services said tariffs will be going up from the first quarter of 2008.

A statement released on Wednesday showed that the new rates will hit a six—year high for households and small businesses.

SP Services attributed the higher cost of electricity to higher fuel prices.

On average, the tariffs will go up by 5.94 percent. This translates into an increase of about S$1.30 in the monthly bill of households staying in one—room flats.

Residents of 5—room flat units are likely to pay about S$5.50 more each month.

The rates are reviewed and adjusted according to fluctuating electricity costs every quarter, and they have been approved by industry regulator, the Energy Market Authority. — CNA /ls

via : http://forums.hardwarezone.com.sg/showthread.php?t=1822639

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via : http://forums.hardwarezone.com.sg/showthread.php?t=1822568

M&M cost $1.50 now?

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i always recall that m&m cost $1....

the drinks are still relatively cheap... some places already selling 1.30 - 1.50 for ice milo. ice kopi/teh already 1.20.

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via : http://forums.hardwarezone.com.sg/showthread.php?t=1911086

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via : http://www.singstat.gov.sg/stats/themes/economy/hist/cpi.html

read via : http://forums.hardwarezone.com.sg/showthread.php?t=1977777

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we will be affected.

http://www.celicasg.org/index.php?topic=3270.0

not if, but just how much.

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SINGAPORE (Thomson Financial) - Annual inflation in Singapore may have accelerated to new multi-year highs in May as soaring crude oil prices pushed up transportation costs, while food and housing costs continued to rise, economists said.

Consumer prices jumped an average 7.9 percent last month from a year ago based on a poll of economists by Thomson IFR. That will top the 7.5 percent rise in April which was already the highest in 26 years.

On a month on month basis, the pace of increase slowed to 0.6 percent in May compared to the 1.2-percent rise in April, according to the poll.

The Department of Statistics will release the inflation data at midday.

The May inflation number "will more or less reflect the continuing increase in crude oil prices, which continue to break new highs over the months," said economist Irvin Seah at DBS Bank.

Crude oil prices jumped 12 percent to an average $123 a barrel in May from April, according to estimates by Oversea-Chinese Banking Corp. economist Selena Ling, with the corresponding jump in jet fuel prices forcing airlines to pass on the costs to consumers by lifting fuel surcharges.

Singapore Airlines has announced it will raise fuel surcharges on flights for the third time this year from Tuesday.

Elsewhere in Asia, "fuel price hikes in Indonesia and Malaysia will weigh on imported food costs and even transportation-related costs [to Malaysia] going ahead," said Ling.

Economists now are saying inflation in Singapore may spike above 8.0 percent this month as oil prices remained at elevated levels, with the full-year inflation average likely exceeding the government's forecast of between 5.0 percent to 6.0 percent.

Crude oil has been trading above $130 a barrel for the most part of June, hitting a record high near $140 a barrel recently on supply concerns and a weak dollar.

DBS Bank's Seah expects annual inflation to peak at 8.1 percent this month.

"Of course there are other factors such as wages continuing to increase, food prices as well. Rentals also are not abating despite the fact that the housing market has remained soft recently," he said.

Domestic inflation should begin easing in July when the effect of the one-year-old 2-percentage point hike in goods and services tax wear off although the number could remain high, economists said.

The high inflation environment may again prompt the Monetary Authority of Singapore, the city-state's de facto central bank, to tighten its monetary policy once more in October by allowing the Singapore dollar to appreciate further to curb inflationary pressures, United Overseas Bank economist Ng Shing Yi said in a note.

"At such levels of inflation, the downside risks to consumer spending, business investment and the current account balance remain considerable, although for Singapore, real wage growth and domestic demand remain intact for now," said Ng.

Despite inflation at multi-year highs, economists remain confident the Singapore economy will manage to grow closer to the high side of the government's target of 4.0 percent to 6.0 percent this year although the pace of growth is expected to weaken in the next two quarters.

via : http://forums.hardwarezone.com.sg/showthread.php?t=2004844

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Singapore's inflation held at a 26-year high in May as food, housing and oil costs continued to rise, according to government data released Monday.

The consumer price index — a noncore measure of costs for goods and services — rose 7.5 percent from a year earlier, the same increase as in April, the Department of Statistics said in a statement.

Food costs in Singapore rose 9 percent from a year earlier in May, led by higher prices of cooked food, rice and other cereals, fresh vegetables, poultry and other foods.

Housing costs jumped 12.4 percent on higher accommodation costs and more expensive electricity. The costs of transport and communication rose 6 percent because of dearer gasoline as well as higher taxi fares and car prices, the statement said.

Compared to April, the index gained 0.3 percent in seasonally-adjusted terms.

Rising energy costs have burdened Singapore in recent months just as a global food shortage has raised prices of staple items across Asia.

via : http://forums.hardwarezone.com.sg/showthread.php?t=2005808

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via : http://www.cbc.ca/world/story/2008/07/16/zimbabwe.html

Zimbabwe's inflation rate a punishing 2.2 million per cent
Last Updated: Wednesday, July 16, 2008 | 10:29 AM ET
CBC News

Zimbabwe's official inflation rate climbed to a record 2.2 million per cent, the country's central bank announced Wednesday, meaning prices are doubling every 25 days.

The situation could in fact be worse than the official tally suggests. Government figures include goods subject to price control, which are almost impossible to find.

Economists estimate that the real annual inflation rate for last month was about nine million per cent, and could rise to about 20 million per cent next month, according to a report in the Guardian newspaper.

The dire news comes at a time when unemployment levels are hovering around 80 per cent.

A report released last month by the United Nations Food and Agriculture Organization and World Food Program estimates that 2.04 million Zimbabweans risk hunger in the next few months. It said things could get worse, "peaking at about 5.1 million at the height of the hungry season between January and March 2009."

The combination of punishing economics and political instability has prompted millions to flee the country for South Africa.

Foreign leaders are calling on President Robert Mugabe and opposition leader Morgan Tsvangirai to meet face to face to resolve the political crisis stemming from the country's disputed presidential election.

Mugabe has been widely criticized over a June 27 presidential run-off that he claims to have won.

Tsvangirai had beaten Mugabe and two others in the first round of voting in March, but didn't win the 50 per cent plus one vote necessary to avoid a run-off. Tsvangirai pulled out days before the run-off against Mugabe because of violence against his supporters.

Both sides say they're willing to share power. However, the ruling ZANU-PF party wants Mugabe — in power since 1980 and seen as increasingly autocratic — at the head of any coalition, something the opposition and Mugabe's critics in the West have rejected.

Critics inside and outside the country say Mugabe is to blame for the collapse of what was once a thriving economy, pointing to his government's seizure of white-owned farms, many of which are no longer functioning.
With files from the Association Press

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http://www.channelnewsasia.com/stories/afp_world_business/view/360764/1/.html

Posted: 16 July 2008 2102 hrs
    
WASHINGTON : US consumer prices soared at the strongest pace in 26 years in June, rising 1.1 per cent from May, due to skyrocketing energy prices, the Labor Department said on Wednesday.

Core prices excluding energy and food climbed 0.3 per cent, the agency reported.

Most analysts had expected a gain of 0.7 per cent in headline inflation and a 0.2 per cent rise in core inflation.

The monthly advance in the Labor Department's consumer price index (CPI) was the sharpest since June 1982, while the core inflation gain was the strongest since January.

Inflation picked up momentum from May, when headline inflation was up 0.6 per cent and the core rate increased 0.2 per cent.

On a 12-month basis, CPI was up 5.0 per cent in June, the hottest annual inflation level since May 1991. Core CPI was 2.4 per cent higher than in June 2007, the strongest rate since March.

The Labor Department said that energy prices accounted "for around two-thirds" of the rise in overall inflation, advancing 6.6 per cent in June following a 4.4 per cent increase in May.

Food prices climbed 0.8 per cent. Excluding energy and food, significant price increases were seen in several sectors. Transportation prices rose 3.8 per cent, driven in part by a 4.5 per cent rise in airfares, the steepest increase since March 2000. - AFP/ms

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[SIZE="4"]Households to see average rise of about [COLOR="Red"]22%[/COLOR] in electricity bills from Oct[/SIZE]
By Channel NewsAsia | Posted: 29 September 2008 1035 hrs     

SINGAPORE: Higher oil prices have pushed up electricity prices for this quarter by about a fifth.

SP Services said on Monday households will see an average increase of 21.46 per cent in electricity bills, when average electricity tariffs go up by 5.38 cents per kilowatt-hour.

On average, all SP Services customers will face a 21.89 per cent increase.

For the period from October 1 to December 31, tariffs have been pegged to a higher "forward fuel oil price" of S$155.14 per barrel.

This price is 38.06 per cent higher than the S$112.35 per barrel in this current quarter.

The electricity tariff is reviewed quarterly and adjusted in line with fluctuations in the cost of electricity, and [SIZE="5"]approved[/SIZE] by the Energy Market Authority.

At a news conference on Monday, the Authority's chief executive Khoo Chin Hean said that the increase is the highest so far this year.

- CNA/yb

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over [SIZE="6"]20 fugging %[/SIZE] leh!!!!
chicken bye bye! energy regulators wat u have to say other than rubber stamp?!
this is your definition of "market liberalisation will benefit the public and consumers"?!![/COLOR]

via : http://forums.hardwarezone.com.sg/showthread.php?t=2109548