Singapore inflation edges higher to 5.3% in June
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SINGAPORE: Inflation in Singapore continues to climb with housing and transport costs topping the increase.
The consumer price index, a key gauge of inflation, rose to 5.3 per cent year-on-year in June, according to a statement from the Department of Statistics.
The data exceeded market expectations of a 5.1 per cent increase.
Prices remain firm as the effect of housing becomes stronger, gaining 9.7 per cent in June, with the cost of accommodation increasing by 10.8 per cent on-year.
Transport cost gained 8.7 per cent last month from 2011, with the increase mainly in private road transport because of higher car prices.
Together, accommodation and private road transport costs accounted for around two-thirds of CPI-All Items inflation in June.
Measured month-on-month, the index was unchanged after climbing 0.2 per cent in May.
MAS Core Inflation, which excludes the costs of accommodation and private road transport, was unchanged at 2.7 per cent for the third straight month.
Accommodation cost inflation was stronger than expected due to leasing contracts being renewed at considerably higher rentals, particularly in the HDB segment, a joint statement issued by the Monetary Authority of Singapore and the Ministry of Trade and Industry said.
COE premiums have also risen sharply recently, and will remain at elevated levels, given the further reduction in COE supply from August.
For the whole year, the authorities expect inflation rate to be lower in the second half of the year, compared to the first half.
However, it will remain above its historical average.
They add that inflation for the whole year is likely to come in at the upper half of the 3.5 per cent to 4.5 per cent forecast range.
- CNA/wm -
COE rise by how many percent?
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The inflation should serve some basis of future development & balance for gd of mankind like environmental friendliness, animals loving and scarcity of land such as inflation on meat and maintaining the affordable prices of veg. multi cultural should include agriculture..
it may engage in austerity - raising taxes to deflate spending on non essential & necessities of goods & services such as vehicle. Alternatively, if a government is afraid that the economy is going into recession it can engage in fiscal stimulus - cutting taxes on rentals, company vehicle, private bus, home for aged, deformed etc raising spending
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http://www.bbc.co.uk/news/10162176
EU austerity drive country by country
The colossal debts and rock-bottom growth of eurozone "periphery" nations - especially Greece, Italy and Spain - have hammered market confidence. The interest rates (yields) on their sovereign bonds have soared, making it hard or even impossible for them to borrow in international markets.
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We must be glad for the $50 increase in our salaries.
Phew.
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Singapore's central bank raises inflation forecast
SINGAPORE: The Monetary Authority of Singapore (MAS) on Wednesday revised its 2012 consumer inflation forecast for Singapore to 4% to 4.5% from 3.5% to 4.5%.
This is because the central bank expects housing rentals and COE premiums to remain high.
However, the MAS kept unchanged its core inflation forecast of 2.5%-3.0% for the year.
The MAS core inflation measure, which excludes costs for accommodation and private road transport, moderated to 2.7% in the April-to-June quarter.
"It (core inflation) is likely to ease further and approach 2 percent by the end of the year. This is not far from the historical average of 1.7 percent," MAS managing director Ravi Menon said at a press conference.
Local food inflation should remain relatively contained for the rest of the year, he added.
Official figures on Monday showed Singapore's Consumer Price Index (CPI) inflation rate rose to 5.3% year-on-year in June from 5.0% the previous month. The CPI rose by 5.1% in the first half of the year, down from 5.5% in the second half of 2011.
Mr Menon said bringing down inflation remains one of the central bank's top priorities. He said that MAS' monetary policy has had a restraining effect on inflation and the current policy stance remains appropriate.
On Singapore's economic outlook, MAS retained its projection that the economy would grow between 1% and 3% this year.
But Mr Menon warned that Singapore's economic growth could dip below 1% for 2012 if several downside risks take a turn for the worse.
These scenarios include a recession in the US, significant escalation of the eurozone crisis and a "hard landing" for China's economy.
Still, growth momentum is slowing and the MAS expects average growth in the second half to be lower than the first six months of the year.
Singapore's gross domestic product grew an average of 4.2% in the first half of 2012.
Mr Menon was speaking at an event to launch the central bank's annual report for the year ended March 31, 2012.
MAS made a net profit of S$2.77 billion in fiscal 2011/12, reversing from the loss of S$10.94 billion in the previous financial year when the strong local dollar reduced the value of reserves held in other currencies.
Mr Menon said MAS made foreign investment gains of S$12.1 billion, but overall net profit came in at S$2.77 billion due to a strong exchange rate.
- CNA/cc/ir -
Everyday read about wages increasing for workers.
Huat ah.
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Life is surreal.