"While the usual suspects continued to drive inflation in November—including transport, housing and food costs—it should be noted that all major segments within the CPI basket are seeing price increases" - Standard Chartered Bank economist Alvin Liew said in a note after the data were released [Link]
If you have been watching the markets closely, you will know that oil prices have surged past US$90 a barrel, the price of wheat has double in the past year[Link], sugar has gone up 22% this year[Link] and coffee has gone up 69% this year[Link]. The price of raw commodities,after some lag, will find its way into consumer products.
The latest COE for big cars surged to $72K up 15% from the previous bidding 2 weeks ago[Link]. Housing prices rose something like 60% in 2 years.
Remember the economic expansion in 2007 also brought rapid price increases that was way above increase in wages. The price spike also erodes the purchasing power of CPF funds lock away at 2.5%[Link] and money in savings accounts which now pays below 1%. To adjust for inflation the CPF Minimum Sum was raised by 5.1% from $117,000 to $123,000 and Medisave Minimum Sum was raised by 6.7% from $37000 to $39500[Link]. You can check the previous previous hike of these minimum sums here - the 2009 jump in CPF MS was 10.3% and 7.2% for Medisave Minimum Sum. The CPF MS is adjusted to meet the inflation adjusted target of $120K in 2003 dollars because the minimum sum was less that $120K in 2003, they adjust this figure to close the gap and for inflation. The figure you should pay attention to is Medisave Minimum Sum because it is roughly linked how fast medical cost is increasing - we are looking at escalation of roughly 7% a year here.
The problem with Singapore is the wealth generated by GDP growth is unequally distributed among the people but the rise in the cost of living has to be borne by everyone. 30% of the population has low income that is relatively stagnant....the next 30% probably see wage increase that can hardly keep up with the rise in cost of living. Corporate profits as a % of GDP is at a historic high as we push ahead with economic growth....there is a feeling among many Singaporeans that the booming economy just cause their financial woes to pile up as things become more expensive.