Voodoo Vince

Inflation in S'pore may hit 6.5% this month
By Bryan Lee


STEEP RISES: Higher food and housing costs are likely to cause a spike in price levels this month, while low interest rates may stimulate property prices later in the year, says Citigroup. -- ST FILE PHOTO

CONSUMER prices in Singapore may surge a staggering 6.5 per cent this month, bringing full- year average inflation to an equally eye-popping 5 per cent, according to Citigroup.

Higher housing and food costs are likely to cause a spike in price levels this month, while low interest rates may stimulate property prices later in the year, said the Citigroup economist Kit Wei Zheng yesterday.

Mr Kit said his higher estimate stems from 'pent-up price pressure from the strong growth of the past two years'.

Citigroup's new forecast comes days after United Overseas Bank predicted that inflation in Singapore would exceed 6 per cent this quarter.

Economists have been scrambling to keep their forecasts up with the relentlessly rising pace of inflation in recent months.

Inflation hit a 16-year high of 3.6 per cent last October before accelerating to 4.2 per cent in November, the fastest rate of price increase since 1982.

The Government has since raised its forecast, saying prices may jump as much as 5 per cent in the early part of this year, with full-year inflation coming in between 3.5 per cent and 4.5 per cent.

But those estimates may still be too conservative.

'We are upgrading our inflation forecast for this year to 5 per cent from 3.8 per cent previously,' said Mr Kit.

He expects inflation to stay around 5 per cent to 6 per cent in the first six months of the year before moderating to about

4 per cent in the rest of the year.

Accommodation costs will jump up this month, as HDB annual values have recently been revised for the first time since 2004.

Food prices may also spike, as wholesalers renegotiate prices held down by contracts that expire this month, said Mr Kit.

Other economists are sitting tight for now, preferring to wait for more actual figures before changing their predictions for Singapore's inflation rate.

A slowing world economy may put the brakes on oil prices and ease inflationary pressures, they said.


http://www.straitstimes.com/Free/Sto...ry_196230.html

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People don't plan to fail... They fail to plan.

raysusan

life is getting tough not only to the poor
also going up to those middle income group

Voodoo Vince

The poor getting poorer while the rich getting richer.

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People don't plan to fail... They fail to plan.

rinoakoh

In actual fact,inflation rate is higher than 6.5%. We all stay in Spore, we dun need the papers to tell us about inflation. Things we paid for got more expensive and that's definitely more than 10% mark-up.

And do u know why is the gap between poor n rich forever widening?

Its to do with our mentality.
The poor will forever be poor if they dun have the mentality to get rich.
They dun have the time nor urge to know how the rich got richer.
They have the mentality that its unachievable coz they are poor.
The moment they work for the rich, they are deemed to be poor.

Our human brain is both wonderful n mysterious, when we think like the rich, the actions you bring forward will work you towards the wealth.

Everyone has the ability to make it rich, but few dare to reach out.
So dun blame anyone, blame only yourself.
Blame yourself for being in that perpetual state of poor becoz....
You do not dare to take the first step out of your comfort zone

One life example:
How to invest if I have only 5k ?
To the poor, this is a very big question mark. They rather keep inside the bank wherer they can see it n keep seeing it...
To the rich, they can easily take this 5k n make it into another 5k and another 5k...

See the difference?
Its to do with the mentality...

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id_peace

it is much higher than 6.5 Just taxi transport alone kills the stats

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Leocravensky

the 20 cents jump every tick always brings me closer to a heart attack rather than my destination hehe

Leo~
Blog : leoandsong.blogspot.com

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