UP: Singapore inflation climbs again to 5.4%

[carbuncle]

SINGAPORE: Singapore's
inflation rate accelerated in
April to 5.4 per cent.
The year-on-year increase in
the consumer price index (CPI)
is up from an increase of 5.2
per cent in March, figures
from the Department of
Statistics show.
Higher accommodation costs
were the major contributor to
the April increase.
Private road transport costs
also continued to climb
because of elevated COE
prices, although they rose at a
slower pace than in March.
The Monetary Authority of
Singapore's (MAS) core
inflation rate, which excludes
accommodation and private
road transport, fell in April to
2.7 per cent from 2.9 per cent
the previous month. It
attributed the decline to lower
services and food inflation.
MAS reiterated its forecast for
inflation to "remain elevated
over the next few months,
before easing gradually" in
the second half of 2012.
The central bank forecasts CPI
inflation at 3.5 per cent to 4.5
per cent for the year as a
whole, and core inflation in
the range of 2.5 per cent to
3.0 per cent.
The MAS said accommodation
costs, which include imputed
rentals on owner-occupied
homes, will remain the biggest
contributor to consumer
inflation this year, "as leasing
contracts continue to be
renewed at rentals that are
considerably higher than those
under existing contracts,
especially in the HDB
segment".
"Car prices could also
increase if COE premiums rise
further in response to tight
COE supply," the MAS
statement said.
"In addition, wages and other
costs will likely continue to
pass through to consumer
prices, albeit at a more
moderate pace than that
during early this year."
- CNA/wm

[DKSG]

SINGAPORE: Singapore's
inflation rate accelerated in
April to 5.4 per cent.
The year-on-year increase in
the consumer price index (CPI)
is up from an increase of 5.2
per cent in March, figures
from the Department of
Statistics show.
Higher accommodation costs
were the major contributor to
the April increase.
Private road transport costs
also continued to climb
because of elevated COE
prices, although they rose at a
slower pace than in March.
The Monetary Authority of
Singapore's (MAS) core
inflation rate, which excludes
accommodation and private
road transport, fell in April to
2.7 per cent from 2.9 per cent
the previous month. It
attributed the decline to lower
services and food inflation.
MAS reiterated its forecast for
inflation to "remain elevated
over the next few months,
before easing gradually" in
the second half of 2012.
The central bank forecasts CPI
inflation at 3.5 per cent to 4.5
per cent for the year as a
whole, and core inflation in
the range of 2.5 per cent to
3.0 per cent.
The MAS said accommodation
costs, which include imputed
rentals on owner-occupied
homes, will remain the biggest
contributor to consumer
inflation this year, "as leasing
contracts continue to be
renewed at rentals that are
considerably higher than those
under existing contracts,
especially in the HDB
segment".
"Car prices could also
increase if COE premiums rise
further in response to tight
COE supply," the MAS
statement said.
"In addition, wages and other
costs will likely continue to
pass through to consumer
prices, albeit at a more
moderate pace than that
during early this year."
- CNA/wm

At this rate, the $100K you hold in the bank is now worth less than $95K!

In 10 year's time, it will be worth less than $50K !

Quick! Go buy properties NOW !

DKSG

[House]

in 10 yrs time - can of coke at least $3:doh:

[azeoprop]

Nowadays food court and hawker dishes so expensive and portion so small... :tsk-tsk:

[phantom_opera]

5kg Royal Umbrella Index now at 15.80
was $10.80 in April 2008, UP 50% in 4y

NTUC Fairprice Fragrant Jasmine 5kg $7.80 now,
was $5.75 in 2008, up 34.8% in 4y

Sugar almost up 100% from 2007

:simmering:

[phantom_opera]

http://markets.ft.com/RESEARCH/uploadhandler/z04850f0az15c0dfd1732143a1bfa274c8b472f631.png

http://markets.ft.com/RESEARCH/uploadhandler/z04850f0azce117567e2ee474987e1a1be97d5ab30.png

http://markets.ft.com/RESEARCH/uploadhandler/z04850f0az01c6b538c1e84278a5b26be1ef7fefa2.png

[carbuncle]

5kg Royal Umbrella Index now at 15.80
was $10.80 in April 2008, UP 50% in 4y

NTUC Fairprice Fragrant Jasmine 5kg $7.80 now,
was $5.75 in 2008, up 34.8% in 4y

Sugar almost up 100% from 2007

:simmering:
Shocking indeed!!!! Eat less rice. More curry from Lulu

[kane]

Doesn't come as a surprise. All that money printing in US and Europe will have some leakages to this part of the world.

[Regulators]

Things will get as expensive as london someday. When I was schooling in england last time, kids slot one pound coins into the machines in arcades, at that time exchange rate was 1 pound to $3. A bowl of wanton soup with only four miserable wantons in a chinese restaurant cost 2.5 pounds, which was $7.50 back then. As a student, I had to cook in the hostel most of the time. In singapore, we will one day experience this kind of prices.

[phantom_opera]

August's inflation at 3.9%, lowest since November 2010

Housing was the biggest contributor to August inflation, rising 6.1 per cent from a year earlier.

Accommodation cost, a subset of housing, slowed to 7.4 per cent year-on-year in August from 7.8 per cent in July as residential property rentals rose at a more moderate pace.

[minority]

At this rate, the $100K you hold in the bank is now worth less than $95K!

In 10 year's time, it will be worth less than $50K !

Quick! Go buy properties NOW !

DKSG


Wrong. Buy Commodity and GOLD!!!

[minority]

5kg Royal Umbrella Index now at 15.80
was $10.80 in April 2008, UP 50% in 4y

NTUC Fairprice Fragrant Jasmine 5kg $7.80 now,
was $5.75 in 2008, up 34.8% in 4y

Sugar almost up 100% from 2007

:simmering:


Crude Oil was USD $30 a barrel. USD 1.8 , Euro 2.6 , Pound 2.8 back then too. I think 2nd half will have major inflation again. Plus US corn harvest is bad.. which is the base commodity in many product from meat to oil.....

[phantom_opera]

up up up

By Kevin Lim
SINGAPORE, Oct 23 (Reuters) - Singapore's inflation quickened in September as car prices and rents soared from a year ago, increasing the pressure on the government for a more aggressive stance including further measures to cool the property market.
The city-state's consumer price index rose 4.7 percent in September from a year ago, up from August's 3.9 percent increase. Economists polled by Reuters had expected a reading of 4.2 percent.
Private road transport was the biggest contributor to September inflation, gaining 10.8 percent year-on-year following a 6.3 percent increase in August, but economists noted price pressures building up in other areas.
"Looking across the spectrum we're starting to see persistent price increases in services cost, namely healthcare. It shows there's an underlying force, an upward bias led by wages, which is impacting more of the services component," said Barclays regional economist Leong Wai Ho.
Francis Tan, an economist at United Overseas Bank, said the government will have to introduce measures to complement steps taken by the central bank, as Singapore's use of an appreciating currency to manage monetary policy is of limited value against domestic price pressures.
"The recent October policy is not going to be of much help. It's not imported inflation that we are looking at right now but cars and rents. The tight labour market and wage pressures are going to raise business costs and trickle to expected inflation," he added.
The Monetary Authority of Singapore earlier this month defied forecasts by keeping monetary policy tight and allowing the local dollar to appreciate at its current pace, bucking the regional trend as it warned of persistent inflationary pressures in a slowing economy.
But while the stronger currency has helped keep a lid on prices of imports, domestic pressures within Singapore have continued to keep inflation well above historic levels.
Inflation averaged 5.2 percent last year, above the official forecast of around 5 percent and the 30-year average of 2.2 percent.
The monetary authority now expects inflation to slightly exceed its most recent forecast of 4.0 to 4.5 percent for 2012, which is much higher than the 2.5 to 3.5 percent outlook it gave at the start of the year.
The Singapore dollar rose slightly to around 1.2203 against the dollar from 1.2212 before the inflation data.
Malaysia last week reported annual inflation of 1.3 percent in September, the lowest in two years, while Indonesia's year-on-year inflation dipped to 4.31 percent in September from 4.58 percent in August.
MONETARY POLICY, CARS
Singapore car prices have soared over the past year mainly due to government measures to control the number of cars in the city-state via certificates of entitlement (COEs) that motorists need before buying a new car.
Due to a jump in COE prices, the asking price for a new Toyota Vios is around S$120,000, up from around S$74,000 at the start of the year, according to prices tracked by motoring website sgcarmart.com.
\
Tim Condon of ING Financial Markets said Singapore's inability to keep inflation is check is partly due to its exchange rate policy that ties short-term interest rates to U.S. rates. The city-state
"You've got conditions that short-term interest rates will remain zero for an extended period. That is stoking expectation of property price inflation, which then feeds into consumer price index expectations," he said.

[eng81157]

up up up

By Kevin Lim
SINGAPORE, Oct 23 (Reuters) - Singapore's inflation quickened in September as car prices and rents soared from a year ago, increasing the pressure on the government for a more aggressive stance including further measures to cool the property market.
The city-state's consumer price index rose 4.7 percent in September from a year ago, up from August's 3.9 percent increase. Economists polled by Reuters had expected a reading of 4.2 percent.
Private road transport was the biggest contributor to September inflation, gaining 10.8 percent year-on-year following a 6.3 percent increase in August, but economists noted price pressures building up in other areas.
"Looking across the spectrum we're starting to see persistent price increases in services cost, namely healthcare. It shows there's an underlying force, an upward bias led by wages, which is impacting more of the services component," said Barclays regional economist Leong Wai Ho.
Francis Tan, an economist at United Overseas Bank, said the government will have to introduce measures to complement steps taken by the central bank, as Singapore's use of an appreciating currency to manage monetary policy is of limited value against domestic price pressures.
"The recent October policy is not going to be of much help. It's not imported inflation that we are looking at right now but cars and rents. The tight labour market and wage pressures are going to raise business costs and trickle to expected inflation," he added.
The Monetary Authority of Singapore earlier this month defied forecasts by keeping monetary policy tight and allowing the local dollar to appreciate at its current pace, bucking the regional trend as it warned of persistent inflationary pressures in a slowing economy.
But while the stronger currency has helped keep a lid on prices of imports, domestic pressures within Singapore have continued to keep inflation well above historic levels.
Inflation averaged 5.2 percent last year, above the official forecast of around 5 percent and the 30-year average of 2.2 percent.
The monetary authority now expects inflation to slightly exceed its most recent forecast of 4.0 to 4.5 percent for 2012, which is much higher than the 2.5 to 3.5 percent outlook it gave at the start of the year.
The Singapore dollar rose slightly to around 1.2203 against the dollar from 1.2212 before the inflation data.
Malaysia last week reported annual inflation of 1.3 percent in September, the lowest in two years, while Indonesia's year-on-year inflation dipped to 4.31 percent in September from 4.58 percent in August.
MONETARY POLICY, CARS
Singapore car prices have soared over the past year mainly due to government measures to control the number of cars in the city-state via certificates of entitlement (COEs) that motorists need before buying a new car.
Due to a jump in COE prices, the asking price for a new Toyota Vios is around S$120,000, up from around S$74,000 at the start of the year, according to prices tracked by motoring website sgcarmart.com.
\
Tim Condon of ING Financial Markets said Singapore's inability to keep inflation is check is partly due to its exchange rate policy that ties short-term interest rates to U.S. rates. The city-state
"You've got conditions that short-term interest rates will remain zero for an extended period. That is stoking expectation of property price inflation, which then feeds into consumer price index expectations," he said.


just limit the number of COEs, fix the price of COEs and whoever wants to get a car ballot for it.

with a freaking COE, i can buy 2-3 cars just across the causeway. :doh: :doh: