Govt will continue to keep close watch on inflation: Tharman
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SINGAPORE: Deputy Prime Minister and Finance Minister, Tharman Shanmugaratnam, said the government will continue to keep a close watch on inflation, and is prepared to introduce additional measures if necessary.
In a written reply to the Parliament, Mr Tharman outlined government measures to contain rising costs and help lower-income consumers.
On a year-on-year basis, Singapore's CPI-All Items inflation rose to 5.3 per cent in June 2012 from 5.0 per cent the previous month.
Excluding imputed rentals on owner-occupied homes, which has no cash impact on households, inflation was 4.4 per cent in June 2012.
Mr Tharman said he expects this to moderate towards the end of the year.
He added that food inflation has eased from 3.0 per cent in the first quarter to 2.4 per cent in the second quarter due to moderated cost increases for both prepared and non-prepared food.
To keep the costs of prepared food affordable, the National Environment Agency (NEA) intends to adopt management models to keep costs low. For instance, NTUC FoodFare, a social cooperative, was appointed to run the new Bukit Panjang Hawker Centre on a not-for-profit basis. NEA also plans to add 10 more hawker centres to provide affordable options to more Singaporeans.
The Retail Price Watch Group (RPWG) also keeps a close watch on any excessive price increases of food and other daily necessities. Mr Tharman also cited the GST Voucher Scheme, which will benefit lower-income households. For instance, a typical retiree household staying in a HDB three-room flat receives an average of S$960 a year as a result of the scheme.
While house prices are not part of CPI inflation, the government has taken steps to boost the supply of Build-to-Order (BTO) flats and to increase the supply for private residential property through the Government Land Sales Programme. The government has also implemented four rounds of property market cooling measures and will continuing to monitor the situation.
With regards to transport costs, Mr Tharman said the cost increases have been driven largely by COE prices. The government has recently refined the vehicle quota system and will continue to invest heavily in improving public transport.
Meanwhile, the Monetary Authority of Singapore (MAS) has continued to implement a calibrated tightening of monetary policy through the appreciation of the Singapore dollar to curb imported and demand-led inflation. MAS will be reviewing its monetary policy stance in October.
- CNA/ck -
Government should issue bonds with interest rate which match to inflation rate so that the value of our money is not eroded due to inflation.
Else how do the man in the street cope with inflation when the banks' interest rate remain so low?
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Sheng Siong and NTUC Fair Price ..as usual...more house brands...
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inflation must go up now that gdp growth drops. go up up up up one of the ways to sustain receiving their salary.
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"... keep a close watch on inflation, and is prepared to introduce additional measures if necessary."
Sound like watching the water boil and then switch off the heat source... I can do that for the money they are having...
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Watch and no action... got problem then take action... Prevention as become a low piroity to them...
They are more interested in seeing the problem, wait for it to happen then attempt to solve the problem... If cannot solve then think of an excuse, if can solve than yaya papaya make comments...
Eye power...
