Low-income households hit hard by inflation last year

SINGAPORE — Low-income households faced the brunt of inflation last year, which was driven largely by housing, transport and food costs.

However, excluding imputed rentals on owner-occupied accommodation, inflation for this group of households — the bottom 20 per cent of income earners — was slightly lower than it was for the middle 60 per cent and highest 20 per cent income groups.

The Consumer Price Index (CPI) for the lowest income group went up by 3.5 per cent, 3.6 per cent for the middle income group and 3.8 per cent for the higher income group, according to numbers released by the Singapore Department of Statistics (Singstat) yesterday.

Including imputed rentals on owner-occupied accommodation, inflation was 5.6 per cent for the lowest income group, 4.7 per cent for the middle income group and 4.2 for the highest income group.

Overall, inflation was 4.6 per cent last year, lower than the 5.2 per cent in 2011. Excluding imputed rentals on owner-occupied accommodation, inflation was 3.6 per cent compared to 4.2 per cent in 2011.

All incomes groups were hit by the higher prices of cars and food.

Costs of minor repairs and maintenance also increased last year from 2011, as Government rebates on service and conservancy charges (S&CC) for HDB households were given out in 2011, creating a lower base.