Inflation slowed in the second half of last year: Report

SINGAPORE — Inflation slowed down in the second half of last year, with the consumer price index (CPI) for general households rising by 1.9 per cent over the same period in 2012, the Department of Statistics said today (Jan 23).

The increase was lower than the 2.8 per cent rise recorded in the first half of last year.

A similar trend was observed for CPI excluding imputed rentals on owner-occupied accommodation (OOA), which rose by 1.5 per cent, down from the 2.2 per cent in the first half of 2013.

In terms of the different income groups, the CPI excluding imputed rentals on OOA for the lowest 20 per cent income group rose by 1.1 per cent. This was lower than the increases of 1.4 per cent and 1.8 per cent experienced by the middle 60 per cent and highest 20 per cent income groups respectively.

For the CPI-All Items index, the increase for the lowest 20 per cent income group was 2.3 per cent, higher than the 1.9 per cent for both the middle 60 per cent and highest 20 per cent income groups. This was due to a larger increase in imputed rentals on OOA — which do not involve actual cash expenditures for households who own their homes – for the lowest 20 per cent income group.

Besides imputed rentals on OOA, higher food prices also contributed to the rise in CPI for all income groups. These price increases were moderated by lower electricity tariffs, service & conservancy charges (S&CC) and a lower government concessionary levy for foreign domestic helpers during the second half of 2013.