Singapore Feb 2013 inflation spiked to 4.9% yoy

[phantom_opera]

[phantom_opera]

SINGAPORE: Singapore's inflation may remain elevated for years to come, according to a survey by the Singapore Management University (SMU) where it forecasts an inflation rate of close to 5 per cent in 2017.

The survey also found Singaporeans expect inflation to hit 4.4 per cent this year.

The online survey was derived from around 400 randomly selected individuals from Singapore households. It was conducted jointly by SMU's Sim Kee Boon Institute for Financial Economics and MasterCard.

Inflation averaged 4.6 per cent last year - not as quite as hot as the 5.2 per cent in 2011.

Inflationary expectations have subsided because of the uncertain global climate but survey respondents predict 4.4 per cent in 2013 - near to the top of the Monetary Authority of Singapore's estimated 3.5 to 4.5 per cent range.

The survey's composite five-year-expectation is 4.97 per cent - just below the 5.2 per cent predicted in the survey in September.

SMU's programme director of Sim Kee Boon Institute Aurobindo Ghosh said: "People are always concerned and they don't always see very clearly what will happen five years later. They will have to rely on media for example, they have to rely on how things are looking, their confidence level. So, we are not going to put too much money into the fact that it is going to be 5 per cent five years later. It might really come down if the conditions actually improve. So, this are perceptions."

However, the recent cooling measures in the property sector are expected to put a check on headline inflation.

Economists said inflationary pressures in Singapore are not just asset prices boosted by liquidity, but homegrown prices as well, such as labour and rental costs.

And investors are always looking at hedging their wealth which is being eroded by inflation.

Centennial Group International's director Manu Bhaskaran said: "The natural place is to look at property. If one part of property market is closed, they will go into another. If more and more administrative measures are placed on property, then I am sure innovative financial institutions will come up with new kinds of products that will enable Singapore savers to invest in property but bypass regulations."

Some members of the survey panel suggested the issuance of inflation-linked bonds may help Singaporeans to hedge against price rise rather than a mis-allocation of assets, geared entirely toward real estate.

[phantom_opera]

Residential rental contracts are still being reset higher, contributing to a 0.4% rise in overall accommodation costs in February from the previous month, according to the MAS.

Food prices in February rose 2.3% year-on-year, after rising 1.0% in January. This was related to a rise in food costs over the Lunar New Year, and a lower base of comparison as the holiday fell in February this year and in January last year.

Core inflation, which excludes accommodation and transport costs, rose to 1.9% from a year-on-year rise of 1.2% in January. That rise was partly due to an increase in the cost of maid services

[eng81157]

Residential rental contracts are still being reset higher, contributing to a 0.4% rise in overall accommodation costs in February from the previous month, according to the MAS.

Food prices in February rose 2.3% year-on-year, after rising 1.0% in January. This was related to a rise in food costs over the Lunar New Year, and a lower base of comparison as the holiday fell in February this year and in January last year.

Core inflation, which excludes accommodation and transport costs, rose to 1.9% from a year-on-year rise of 1.2% in January. That rise was partly due to an increase in the cost of maid services

eh, not true leh. my people's park food centre ice teh O kosong jumped 15% in 3 months

[phantom_opera]

eh, not true leh. my people's park food centre ice teh O kosong jumped 15% in 3 months

the CPI food prices majority are linked to NTUC house brands mah

NTUC will "control" the prices (but they can always low quality he he he)

[eng81157]

the CPI food prices majority are linked to NTUC house brands mah

NTUC will "control" the prices (but they can always low quality he he he)

but it ain't NTUC that sells me the ice teh O kosong. there is a disconnect between theory and reality

[phantom_opera]

dun worry ... I heard a bank has > 5 months bonus for 2012

is that the reason why property market is so hot, 5 months of bonus cancel out ABSD

[phantom_opera]

but it ain't NTUC that sells me the ice teh O kosong. there is a disconnect between theory and reality

for sure your Chinatown drink prices is not counted in the CPI basket .. they will normally count whatever they can control (or less likely to increase)

[mcmlxxvi]

Avg rental yields today of 4% not even enuf to cover ...

[phantom_opera]

Avg rental yields today of 4% not even enuf to cover ...

bond is similar, Genting 5.125% perpetual has reached 1.06x ... that means yield to maturity drops to about 4%

of course leverage yield may still be able to beat inflation

[mcmlxxvi]

bond is similar, Genting 5.125% perpetual has reached 1.06x ... that means yield to maturity drops to about 4%

of course leverage yield may still be able to beat inflation

Dont mention the L word!!!!!!!

shhhhhhhhhhhhhhhhhhhhhhhhhhhh

[phantom_opera]

looks like Brazil is stuck in the same situation as Singapore

Brazil’s annual inflation rate through mid-February surpassed economists’ forecasts for the eighth consecutive month, reaching 6.18 percent as measured by the IPCA-15 index.

FT:

Mr Ramos from Goldman Sachs said the elevated inflation figures and lacklustre growth rates were the symptoms of a policy mix based on government intervention. Brazil’s efforts to protect local industries through trade barriers and by weakening its exchange rate meant the country was not benefiting from global deflationary trends.
Instead, the government was trying to control inflation through unorthodox measures, such as limiting the price of petrol or slashing electricity tariffs and taxes on car sales.

[sh]

It's going to get worse with the labour crunch... Not more foreigners... No more cheap labour... Expect to pay more... You get what you ask for....

[indomie]

Indonesia also in the same boat. The fuel subsidy is draining the country reserve. But if they remove the subsidy, all hells break lose. Inflation will shoot up.

[phantom_opera]

Worldwide money printing is shifting the power of pricing to limited-resource owners such that commodities are priced higher e.g. jet fuel, property rental is higher in land constrained cosmopolitans

Governments will need to redistribute wealth by taxing the resource owners more ... but they are either too slow or reluctant to do it

It is no wonder everybody is rushing to own properties in Singapore, Hong Kong, Beijing, Shanghai, London, Manhattan ...

[Werther]

My friend just told me he is trying to renew his current lease from $3.5k to $4k. He is upset with the 14% jump from the last rental and he compared to the latest inflation figure @4.9%...he said the disparity is too huge and want to renegotiate with his landlord. Is he correct to for him to tell the landlord that inflation is 4.9% and therefore the increased in rental shd not be more than that....?

[DC33_2008]

Just got a new tenant with 13% increase in rental last weekend. There is still a demand in certain locations. Owners get tax for more than 4.9%. How to raise only based on inflation.

My friend just told me he is trying to renew his current lease from $3.5k to $4k. He is upset with the 14% jump from the last rental and he compared to the latest inflation figure @4.9%...he said the disparity is too huge and want to renegotiate with his landlord. Is he correct to for him to tell the landlord that inflation is 4.9% and therefore the increased in rental shd not be more than that....?

[eng81157]

My friend just told me he is trying to renew his current lease from $3.5k to $4k. He is upset with the 14% jump from the last rental and he compared to the latest inflation figure @4.9%...he said the disparity is too huge and want to renegotiate with his landlord. Is he correct to for him to tell the landlord that inflation is 4.9% and therefore the increased in rental shd not be more than that....?

can't he just take his money and walk?

[phantom_opera]

Feb rental up according to MAS ... obviously demand still outstripping supply as the garmen still taking in foreign PMETs while housing completion slows down due to labor crunch

if refuse to pay high rental, SPRs may be forced to buy now b4 next CM by paying that 5% ABSD which is something like 1y rental

[phantom_opera]

oil price on the run again, which may have major impact on inflation worldwide ... watch out for breakout around $100 level

Oil prices rose to a five-week high Tuesday helped by firm US economic data.

New York's main contract, West Texas Intermediate crude for May delivery, gained $1.53 to $96.34 a barrel.

Underpinning that was another monthly gain on the S&P/Case-Shiller index for home prices, which registered its best year-on-year gain, 8.1 percent in February, since mid-2006

[indomie]

Crime rate all around the world is on the spike due to high inflation rate in every corner of the world. Soon sg will be inundated by rich people want a flight to safety.

[phantom_opera]

crime rate is so high because food price stays high

[eng81157]

crime rate is so high because food price stays high

can i bash the kopi uncle for hiking my ice teh O kosong by 15%?

[indomie]

can i bash the kopi uncle for hiking my ice teh O kosong by 15%?

Some kopi uncle are quite good at kung fu..... He might bash u first.

[phantom_opera]

can i bash the kopi uncle for hiking my ice teh O kosong by 15%?

he will tell u ice needs electricity ... very expensive
tea import leh ... transport/logistics/distribution must use up oil
and his salary just up by 5 cents per glass

[eng81157]

he will tell u ice needs electricity ... very expensive
tea import leh ... transport/logistics/distribution must use up oil
and his salary just up by 5 cents per glass

but 15% in 3 months???!!!!
maybe he needs $$ to maintain his PRC mistress

[phantom_opera]

but 15% in 3 months???!!!!
maybe he needs $$ to maintain his PRC mistress

relax lah, QB House haircut now $12, up 20% from $10 ... it is the quantum baby

[hyenergix]

Esso car wash also up. I switch to JB for my car wash n servicing. Inflation on e ground will get worse this year.