Bloomberg - S'pore inflation highest in 12 years
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Singapore's Inflation Highest in More Than 12 Years (Update1)
By Shamim Adam
Sept. 24 (Bloomberg) -- Singapore's consumer prices rose in August at the fastest pace in more than 12 years, suggesting the central bank will maintain a policy of allowing its currency to appreciate to damp inflation.
The consumer price index increased 2.9 percent from a year earlier, after gaining 2.6 percent in July, the Department of Statistics said today. That was the quickest pace since December 1994 and exceeded the 2.8 percent expected by economists. Prices rose 0.3 percent from July.
The central bank last month raised its forecast for inflation this year after prices gained the most in more than a decade in July following an increase in the goods and services tax, or GST. The Monetary Authority of Singapore, which has sought a ``gradual and modest'' strengthening in the currency since April 2004, will review its policy next month.
``Inflation pressures have increased with oil prices reaching record levels and the higher GST rate,'' said Vishnu Varathan, an economist at Forecast Singapore. ``I don't see the MAS stepping away from its policy for an appreciation in the Singapore dollar anytime soon.''
The currency has gained 1.9 percent this year. It rose 0.2 percent to S$1.5047 against the U.S. dollar as of 1:02 p.m. local time from S$1.5071 on Sept. 21.
The central bank expects inflation in 2007 to be between 1 percent and 2 percent, it said on Aug. 27, up from a previous range of 0.5 percent to 1.5 percent. Consumer prices may rise as much as 2 percent next year.
Sales Tax
The government raised the goods and services tax by 2 percentage points to 7 percent on July 1 to make up for a revenue shortfall after corporate tax rates were reduced. The tax increase will add between 0.4 percent and 0.6 percent to consumer prices this year and next, the central bank has said.
Food prices, which make up 23 percent of the index, rose 3.3 percent in August from a year ago, following July's 2.9 percent increase. From July, food prices gained 0.4 percent.
Transport and communication costs, the second-biggest component at 22 percent of the index, climbed 3.4 percent in August from a year earlier. From July, transport and communication prices rose 0.5 percent.
Transport costs are likely to gain further in coming months. Fares for bus journeys will be raised from October, while oil prices above $80 a barrel will increase fuel costs for automobile owners.
Housing, Power
Housing costs, the third-largest component of the consumer price index, climbed 1.1 percent from a year ago, after a 0.7 percent gain in July, today's report showed. From a month ago, housing prices rose 0.2 percent amid higher rental costs.
Singapore Power, the island's biggest power company, raised electricity tariffs for the July to September quarter by an average 8.8 percent, citing higher oil prices. It reviews rates every three months.
Recreation costs, which include holiday travel, gained 4.4 percent in August from a year ago and rose 0.3 percent from the previous month. Prices of clothing and footwear gained 0.8 percent from a year earlier and increased 1.5 percent from July.
http://www.bloomberg.com/apps/news?pid=20601080&sid=a1nIJ4BJvhkk&refer=asia
The SGD continues to appreciate against the USD..so far.. -
Is Bloomberg late in its report this September claiming that Singapore's inflation is highest in 12 years, when a Singapore Blogger had already posted on 24 August 2007 that the July inflation rate has reached a 12 year high ?
What does this mean - two inflation peaks, both acheiving a 12-year high in less then 90 days ?
Surely the Son must have outdone himself, let alone the Father and the Holy Goh'st ? -
2.9% inflation is better than 2.9% deflation. some inflation ie not more than 5% is desirable. -
Prices increase but salary never increase leh.Originally posted by Daddy!!:2.9% inflation is better than 2.9% deflation. some inflation ie not more than 5% is desirable.
So how?
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we know this is true, but the MIW will give you a few examples like starting pay in big 4 is higher then before etc.Originally posted by charlize:Prices increase but salary never increase leh.
So how? -
walao.. wage cut some more.. muz pay for medi this medi tt.. duno wat annuities.. sianz la..
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Revenue shortfall? I beg to differ. Budget 2007 has already revealed that corporate taxes will be even more than before. The forecasted drop in revenue was never going to happen as lower taxes meant more foreign investment.Originally posted by LazerLordz:Singapore's Inflation Highest in More Than 12 Years (Update1)
By Shamim Adam
Sept. 24 (Bloomberg) --
.........The government raised the goods and services tax by 2 percentage points to 7 percent on July 1 to make up for a revenue shortfall after corporate tax rates were reduced. The tax increase will add between 0.4 percent and 0.6 percent to consumer prices this year and next, the central bank has said.
And the 2% GST hike? Here they have gotten away with it. -
yep...actuali compared to other countries...singapore inflation is quite low already...some countries haf 4-5% inflation but its still healthy...zimbabwe has 4digit inflation....u dun even wanna knw whats happening thereOriginally posted by Daddy!!:2.9% inflation is better than 2.9% deflation. some inflation ie not more than 5% is desirable.
inflation is inevitable, actuali in a sense salary still rises, considering that our domestic currency has appreciated against other currencies...n doesnt mean the whole country doin well means everyone salary will rise mah lol...wanna blame, blame those who keep earning more la=p -
What pushes things higher now is spike in commodities like vegetable, seed, crude oil or soya beans or flour
Needless to say, the 2% GST dosen't help either -
erm... Looking at ur post me can't help but wanna highlight to u tat the ministers' rose more than 2.9%. So it is reasonable in their sense for tis percentage of inflation.Originally posted by charlize:Prices increase but salary never increase leh.
So how?
haha -
that i think come from biofuel one....juz read in my source base exam, america trying to cut down on fuel n change to use biofuels, so corn, which is used to make ethanol, which is a biofuel, is highly demanded. from that increase in demand for corn, farmers grow more corn so as to meet the rise in demand. so that leads to a drop in supply for the other commodities because there is limited land. the drop in supply for those commodities therefore results in an increase in price for those products, coz there less supply of a good is available, the more expensive the good will b(juz like limited edition stuff)Originally posted by sbst275:What pushes things higher now is spike in commodities like vegetable, seed, crude oil or soya beans or flour
Needless to say, the 2% GST dosen't help either -
Wow, Lee LiLian is so Beautiful. Sorry, I cannot help but exclaim my appreciation of her looks. And she, a LADY, dares to RISK IT ALL joining the WPYW. I am sure many man out there envy the guts she has.Originally posted by Atobe:Is Bloomberg late in its report this September claiming that Singapore's inflation is highest in 12 years, when a Singapore Blogger had already posted on 24 August 2007 that the July inflation rate has reached a 12 year high ?
What does this mean - two inflation peaks, both acheiving a 12-year high in less then 90 days ?
Surely the Son must have outdone himself, let alone the Father and the Holy Goh'st ?
She put her photo and job title on the portal for all to see. Why is she not afraid? -
yea, a report in reuters said that biofuels are have heavier environmental impacts than petrol and diesel.Originally posted by darkhour:that i think come from biofuel one....juz read in my source base exam, america trying to cut down on fuel n change to use biofuels, so corn, which is used to make ethanol, which is a biofuel, is highly demanded. from that increase in demand for corn, farmers grow more corn so as to meet the rise in demand. so that leads to a drop in supply for the other commodities because there is limited land. the drop in supply for those commodities therefore results in an increase in price for those products, coz there less supply of a good is available, the more expensive the good will b(juz like limited edition stuff) -
the rising commodities price is mainly caused by the hungry dragon, commonly known as the "world's factory" China.... As long as their economy slows down... commodities prices will ease...Originally posted by darkhour:that i think come from biofuel one....juz read in my source base exam, america trying to cut down on fuel n change to use biofuels, so corn, which is used to make ethanol, which is a biofuel, is highly demanded. from that increase in demand for corn, farmers grow more corn so as to meet the rise in demand. so that leads to a drop in supply for the other commodities because there is limited land. the drop in supply for those commodities therefore results in an increase in price for those products, coz there less supply of a good is available, the more expensive the good will b(juz like limited edition stuff)
BUT then, it'll do us more harm than good...
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What sort of logic is this? If you're going to compare to Zimbabwe's 1700% inflation, why not go one better and compare to North Korea whose rate of inflation is immaterial given the dearth of basic necessities?Originally posted by darkhour:yep...actuali compared to other countries...singapore inflation is quite low already...some countries haf 4-5% inflation but its still healthy...zimbabwe has 4digit inflation....u dun even wanna knw whats happening there
inflation is inevitable, actuali in a sense salary still rises, considering that our domestic currency has appreciated against other currencies...n doesnt mean the whole country doin well means everyone salary will rise mah lol...wanna blame, blame those who keep earning more la=p
On the second point, not all forms of inflation are actually the "natural rate of inflation" (this is the inflation which governments can do very little about due to the diverse and borderless nature). As a matter of fact, many features of inflations you encounter in your daily life (anything from bus fares to telco and utility bills) are state-induced inflations implemented through a manipulated constitution backing the interests of rogue operations from monopolies (in which the state has an interest may I add) out to exploit. If you don't get my drift, just imagine a football match where the home team gets to choose who it wants to be the referee - try imagining the referee being impartial under such circumstances...
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er..? wasn't the 2% GST increase was for helping the poor? now its to make up for shortfall in revenue from tax??
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Don't worry! The government will come up with some beautiful looking statistics soon to debunk all these evil myths perpetuated by the dastardly foreign media! Yes, Singapore's salvation lies in statistics!!! 3 cheers for sparkling statistics!! Love live PAP!!! *raises little red book*
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Not to mention the 2% GST make the poor poorer with the increase in pricesOriginally posted by 4getmenot:er..? wasn't the 2% GST increase was for helping the poor? now its to make up for shortfall in revenue from tax?? 
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Originally posted by spinsugar:Don't worry! The government will come up with some beautiful looking statistics soon to debunk all these evil myths perpetuated by the dastardly foreign media! Yes, Singapore's salvation lies in statistics!!! 3 cheers for sparkling statistics!! Love live PAP!!! *raises little red book*
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We can all feel it, and we all know it.
A bottle of green tea costs 90 cents at 7-11, in the year 2000. It cost $1.70 now.
That's almost a 100% increase.
What can we do about inflation, anyway? Time to start doing investments.