Singapore

Inflation eases in first half of 2013

Consumer Price Index-All Items eased to 2.8%, down from 4.1% increase in second half of 2012
Published: 3:03 PM, July 23, 2013

SINGAPORE — The Consumer Price Index-All Items inflation for general households eased to 2.8 per cent in the first half of this year following an increase of 4.1 per cent in the second half of 2012, the Singapore Department of Statistics (SingStats) said today (July 23).

Similarly, the Consumer Price Index (CPI) excluding imputed rentals on Owner-Occupied Accommodation (OOA) slowed from 3.3 per cent in the second half of 2012 to 2.2 per cent in the first half of 2013.

The CPI measures changes in the price level of a basket of consumer goods and services purchased by households and is a general indicator of inflation.

The lowest 20 per cent income group experienced a 1.3 per cent in CPI excluding imputed rentals on OOA. The middle 60 per cent and highest 20 per cent income groups registered increases of 2.1 per cent and 2.5 per cent, respectively.

In terms of CPI-All Items, the inflation rates for the lowest 20 per cent, middle 60 per cent and highest 20 per cent income groups were 3.1 per cent, 2.9 per cent and 2.7 per cent, respectively.

The differences among the income groups were mainly attributed to imputed rentals on OOA which do not involve actual cash expenditure for households who own their homes.

As accommodation costs have a larger weight in the CPI basket for the lowest 20 per cent income group, any general increase in imputed rental costs on owner-occupied homes has a greater impact on the inflation rate for this income group compared with other income groups, SingStat said.

Other items contributing to the increases in the CPIs for all income groups were cars and food. However, these increases were partially offset by lower electricity tariffs, a larger quantum of government rebates on service & conservancy charges (S&CC) for HDB households, and the lower government concessionary levy for foreign domestic helpers.