Inflation picks up pace in November

[princess_morbucks]

http://www.todayonline.com/business/...-pace-november

SINGAPORE — Inflation picked up pace last month, hit by the absence of rebates to Housing and Development Board households and higher Certificate of Entitlement (COE) premiums, but economists said the rise was expected and would not affect forecasts for price rises this year and next year.

The Consumer Price Index (CPI) for all items increased 2.6 per cent on-year last month, up from the 2 per cent seen in the previous month, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said yesterday.

The reading was slightly higher than the 2.5 per cent rise forecast by economists in a Reuters poll.

UOB economist Francis Tan said: “The main driver for inflation was higher accommodation costs compared to October, when there was disbursement of the Service and Conservancy Charges rebates that helped to lower overall housing costs. Additionally, higher COE premiums caused private road transport costs to edge higher.”

Accommodation costs rose 3.3 per cent on-year last month, up from the 1.9 per cent increase recorded in October, said the MAS-MTI joint statement. Private road transport costs, another major contributor to the rise in CPI, increased 3.4 per cent last month, accelerating from 2.7 per cent in October as higher COEs and a jump in petrol prices took their toll.

MAS Core Inflation, which excludes accommodation and private road transport costs, went up to 2.1 per cent last month, compared with 1.8 per cent in October.

CIMB economist Song Seng Wun noted that last month’s Core Inflation rose above 2 per cent for the first time in a year. “This is on the back of price gains in services, clothing, food and travel costs — all these things lifted the core inflation. To some extent, it’s also due to the low base from last year,” he added.

With the outlook for this month remaining broadly similar to last month’s, the analysts expect the full-year CPI and Core Inflation to come in within the official forecasts of 2.5 to 3 per cent and 1.5 to 2 per cent, respectively.

But they cautioned that the tight labour market continues to pose risks.

“COE premiums have started to stabilise somewhat and housing is also likely to be more stable, but we’ll continue to watch for the pass-through effect of higher wages, the result of foreign worker policies, as well as still-firm rentals in both commercial and residential property,” said Mr Song.

Wages are expected to go up next year as the qualifying salaries for employment passes and foreign worker levies will increase in January and July, respectively. “The impact of higher labour costs will be more prominent on the profit margins of companies in the service industries as they tend to have higher labour input content. This may eventually be passed on to higher services inflation,” said Mr Tan.

He also said the United States Federal Reserve’s decision to taper its stimulus may see the US dollar appreciating against its Singapore counterpart, leading to more expensive imports which may also be passed on to consumers.

[phantom_opera]

December inflation reported at 2.4%

I cannot believe it, my own experience is totally contradicting, many food items went up in prices (10-20% up)!!!

[azeoprop]

Yah loh, all those $2.50 hawker stalls became $3 since Nov.

[phantom_opera]

Yah loh, all those $2.50 hawker stalls became $3 since Nov.

Singapore stats board must be only calculating NTUC own brand kind of food in their basket

[Cupcakes]

i no feeling already... nowadays... $6.90 for a plate of rice and veggie or nasi lemak is consider cheap to me then the auntie still auto give me less rice... sibei bohua.

[phantom_opera]

from 2.20 to 2.50!!!

[phantom_opera]

Malaysia also experiences serious food inflation after subsidy cut by the garmen

The measures triggered a 10 per cent rise in petrol pump prices and a 15 per cent hike in power tariffs that are filtering through to prices of other staples such as vegetables and meat.

[azeoprop]

Those with big planters, balconies, PES and roof terrace can start planting their own vegetables and start a farm. Landscaping in condos become rice terraces.

[Allthepies]

Yah loh, all those $2.50 hawker stalls became $3 since Nov.

hawkers also need payrise

[Allthepies]

Those with big planters, balconies, PES and roof terrace can start planting their own vegetables and start a farm. Landscaping in condos become rice terraces.

farmers need payrise too. These are great jobs that we should recognise and reward them

[Allthepies]

dont just give pay increments to managers

[Allthepies]

I hope everybody understands that payrise which you all get contribute to inflation : )

[Arcachon]

How to calculate inflation.

Jun 2006 SGD 535,000.

Jun 2010 SGD 1,550,000.

??????

[phantom_opera]

McDonald’s will host an investor meeting on Thursday, and Penney thinks it’s likely that the company will “declare a coffee war in 2014,” trying to grab market share from Starbucks and Dunkin’ by undercutting their prices on espresso-based coffee drinks

=> yes please

but the new McCafe at Bedok mall priced their cuppacchina at 3.80 ... still cheaper than Starbucks minus the "ambience"?

[phantom_opera]

While full-year comps edged up 0.2% in 2013, that was the result of an increase in average prices at the counter. In the U.S., it (McDonald) was about 3.1% higher than 2012, exceeding the national trend, CFO Peter Bensen said on a conference call. The real headline was a bad one indeed, that traffic dropped 1.9%.

.... price up 3.1%, traffic drops 1.9% ...