Friday, December 23, 2011

Singapore's inflation rate 5.7% in November...

Inflation is up 5.7% in November (see report below).

This is the economy of the past 15 years. When the economy is strong, your wages go up but so does inflation and that eats away the increases. It is difficult for older workers to keep up with inflation and even worse for low skilled workers whose nominal wages have remained stagnant for years - I think you just need to compare the salary of cleaners 10 years ago with what it is today to see this.


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Singapore's inflation up 5.7% in Nov
By Millet Enriquez | Posted: 23 December 2011 1328 hrs
 Shoppers in a retail mall in Singapore.
 
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Shoppers in a retail mall in Singapore.
  
 

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SINGAPORE: Singapore's inflation rose 5.7 per cent on-year in November due to higher costs of housing, car premiums and petrol.

Data from the Department of Statistics (DOS) showed housing costs increased by 10.0 per cent on higher accommodation costs and electricity tariffs.

Meanwhile, transport costs rose 11.6 per cent due to increases in Certificate of Entitlement premiums and petrol prices.

Food prices also went up 3.6 per cent, as a result of costly prepared meals, seafood, dairy products and eggs, fruits, vegetables as well as chilled meat.

Not including accommodation costs, inflation was 4.4 per cent higher from the previous year.

Last month's consumer price index was higher than market expectations of a 5.4 per cent on-year increase.

The consumer price index in January-November 2011 was 5.2 per cent higher compared to the same period last year. Excluding accommodation costs, the consumer price index increased by 4.2 per cent during the same period.

-CNA/ac

43 comments:

Anonymous said...

This is because we have a poor leader who does not know how to manage the country.

At his age, time given to him, experience(PM+Minister), his IQ (his fater always say how good is his study), the private tution he received from his father, and the manpower resources that he has, after 2011 May election, he was still crying for the father and GohXX to help him to carry the school bag.

Anonymous said...

Assuming in a very lucky scenario, if nominal wage of the lowest 50% Singaporeans remains still for the last 10 years, it means that the real wage has decreased over the last 10 years.

In reality, because of mass influx of cheap foreigners over the last 10 years, nominal wage of the lowest 50% has fallen. This means that the real wage of bottom 50% Singaporeans has fallen significantly.

Veritas said...

Put in point blank. Inflation is a tax.

PAP can avoid inflation either by letting SGD raise further and reining property.

So where the $ goes? To all the pockets of elite of course.

With such high inflation, CPF has become a 36% tax on citizen.

CPF can preserve value by allowing us to save in physical bullion. But of course, that defeat the purpose of stealing from us.

If we save in gold, at the end of the day, PAP are not able to pay us with worthless paper SGD that they can print at will, but gold which they are not able to create out of thin air.

In short, PAP are common enemies of Singaporeans. They are thieves robber and tyrant. They are out to oppress us.

Anonymous said...

@Veritas, +1

Actually, the common enemy here is the MAS. The central bank of Singapore. They are the ones controlling the PAP. MAS is not owned by the govt. Its a private entity. A private bank.

Its all the same... said...

MAS & Government are the same.

Check the members of the board.

There is a giant octopus with more than 8 arms.. its got a hold on every aspect of your life. From the momemt of your birth till even after death.

Escape? think of the matrix!

Even if opposition wins big time.. you think SDP,WP will be your guardian angels?.. think again.. the structure is so well designed that once WP sees the actual machinery and how it works, they too will want to have the fruits.

Just be thoughtful and think.

Kin said...

They forgot to mention our elite leaders salaries gone up too. What's new? Let's brace ourselves to be replaced by foreign workforce soon. If you could, leave while u still could, to a more affordable country, doesn't matter 2nd world or 3rd world. If not, stay stucked and suffer. I couldnt really see any silver lining for some of us.

Anonymous said...

The Malaysian permanent residents buy HDB flats and rent out the whole flats secretly to collect rental income. These PRs stay in Johor and travel to Singapore to work everyday.
These PRs earn Singapore $, collect rental Singapore $ but pay expense in Malaysian money.

Anonymous said...

As long as there is political stability, social peace, and merry Christmas shopping at malls, etc it is OK for inflation rate to be at 5.7% or even higher.

Remember, we are uniquely Singapore.

Anonymous said...

Singaporeans r only seeing the tip of the iceberg on inflation. When the situation in Europe stabilises, the value of money will sink even further. Anyone went thru hyper-inflation where prices of goods and services rise onite ?
With 7 billion people and many of them going after the kind of goods and services Singaporeans are after, there will be shortages all over the places.

Anonymous said...

Just control your expenses.

There is nothing much anyone can do, and if anyone could, the inflation rate is not going to be lowered overnight.

rates go up & down through the year
If there is no need to drive, dont.
Take a slow bus and enjoy the ride.

If there is no need to buy a new watch, dont.

Anonymous said...

Anon 23/12/11 20:47

You are very sensible. Are you citizen and voted PAP last election?

Anon 23/12/11 20:47 said...

To
23/12/11 21:06

Yes, I am a Singaporean. NSF
No, I did not vote PAP
No, I did not vote Tony

With inflation rates above 4% annualy, it will affect our CPF.
There will be slow erosion of its value.

Even if you have the minimum sum already.

yet, there is not much that I can do to change the exterior but I have control of the interior: My wallet.

Anonymous said...

@17:34

Haha.. Are u referring to the SMRT chairman who is also the CPF board chairman and the MAS board member? Yes, octopus indeed. Everyone of them from Halimah Yacob, to Ong Ye Kung to Saw Phaik Hwa. Just look at how their tentacles spread from NTUC to SMRT to even Taichi! Do you think they have time to solve any problems? These people, like all PAP MPs are there to leech on Singaporeans.

Anonymous said...

Gerard Ee acted like a stooge. When the attentions and heats are on over the SMRT fiasco, he pull the rabbit out from the bag to distract Singaporeans attention away from the crisis.

runroad said...

ST Breaking News Nov 15, 2011:
CPF rates to stay at 2.5% until March 2012

TODAYonline Breaking News Dec 19, 2011:
CPF members will continue to enjoy a risk-free interest rate of 4 per cent on their Special and Medisave Accounts (SMA) from Jan 1 to March 31, 2012; and on their Retirement Account (RA) from Jan 1 to Dec 31, 2012.

In addition, from Jan 1 next year, the Medisave Required Amount will be raised from the current S$27,500 to S$32,000.


ST breaking News Dec 23, 2011:
Singapore inflation up 5.7% on higher housing, transport costs

Can read or not? That means you are being deliberately, systematically, and cynically robbed before your very eyes. Your savings are magically shrinking even as you peruse Lucky's blog. PAP says it's fair not to pay you an inflation-linked rate because 'it's 'risk-free, mah!' and you actually swallowed that conman's excuse hook, line and sinker without a murmur of protest! And you really think you won't be slaving into your old age in order to survive another day? Muahahahaaaa!

You silly f**kers really deserve every last bit of the grief that's coming your way.

Anonymous said...

Luckily I got sideline income. If not, my salary also stagnate and get eaten up by inflation. Top notch public servants and political leaders can hold multiple directorships, but govt insist that lower-level employees hold only 1 full-time job. Not allowed to earn extra cash from multiple directorships. I don't accept that when I sign contract, the contract stimulates how little money I am allowed to earn each year.

If there is no limit on how much money big shots can earn, what right do they have to tell lower level guys that they are condemned to earn only a small salary? Screw them all!

Anonymous said...

Hi,

Can we exchange link www.singaporespot.com and buzz me if you done so that we can link your site too.

Thank you!

www.singaporespot.com

cow138 said...

Yup. Its amazing that with so high inflation yet our cpf interests are stuck at only 4%. How can the government justify the huge discrepancy since we are using the cpf also for housing. Already our pay is stagnant over the years ie our real income is dropping steadily.
Coupled with also cpf not being able to cope with the decreasing value of our money it is a double whammy

Anonymous said...

huh ? if inflation is @ 5.7% officially. how come cpf rate remain stuck at 2.5+% & 4% with additional 1% on first $60,000/-.

if kopi from 80cent to 90cent or 90 cents to 1dollar, definitely more than 5.7%.

if chicken rice from $2/- to $2.5, definitely more than 5.7%

/SINGAPORE: Singapore's inflation rose 5.7 per cent on-year in November due to higher costs of housing, car premiums and petrol.

Data from the Department of Statistics (DOS) showed housing costs increased by 10.0 per cent on higher accommodation costs and electricity tariffs.

Meanwhile, transport costs rose 11.6 per cent due to increases in Certificate of Entitlement premiums and petrol prices.

Food prices also went up 3.6 per cent, as a result of costly prepared meals, seafood, dairy products and eggs, fruits, vegetables as well as chilled meat.

Not including accommodation costs, inflation was 4.4 per cent higher from the previous year./

I don't know how with housing & fuel (utility, transportation, etc) being quite major personal cost compoents having higher (e.g 10% & 11.6%) could skew the overall figure downward to 5.7%.

Anonymous said...

/Top notch public servants and political leaders can hold multiple directorships, but govt insist that lower-level employees hold only 1 full-time job./

they want low-level employees (being paid peanuts) to concentrate & focus on the work on their behalf and reap the benefits of their hard work so that they can have more time indulging in many mutiple directorships (maybe more income).

Anonymous said...

The Party Against People.
Are their policies anti-people?
Are their leaders anti-people?

Do they respect Singaporeans?
Do they even like Singaporeans?

Are your children Singaporean citizens?

If yes, then why do you support people who want to bully your children and your old parents?

Anonymous said...

//Do they respect Singaporeans?
Do they even like Singaporeans?//

they are too comfortable and maybe convinced by too many FTs who may be in their midst to come out with policies to make it easy for FTs to make our country their playing and working ground while they cannot possibly do so easily in their own countries.

Knowledge based??? said...

Looks like their spin machine has to work overtime.

All the 30 years of hard work, bringing the island to 1st world standards has now collasped.
No amount of apologising or changing or listening will work anymore.

They will have to come out with some real work, real concrete plans to move the nation forward.. amidst this cynical climate.

I wonder sometimes why we have so much vested into electronics manufacturing when China has much more to offer? Many of our workers are stuck in this industry, which should have been scaled down and business people disallowed to set up shop here.

What do these workers acquire when HP, Seagate and Venture employ them? More skills? just to assemble and check components?.. China has much better workers with better eyesight then these.

We have not progressed at all.

What was considered "knowledge based" was limited to genetics research which employed Indian grads and ang moh with chinese academics.. Ah Hock and Bee Lian could not get a job there.

Ah Hock could not get into WSQ Media class either.. Bee Lian could learn WSQ Spa skills.. but the malaysian and PRC girls offered cheaper rates, with 'extra'
services thrown in.

Now Bee Lian and Ah Hock are attending WSQ Personal Develeopment class ( 2 days) under the CDC's support.

Maybe SingTel can employ them now since they are certified to be able to "develope" themselves..

But I am certain the Ninnoy speaks better English and so, Ah Hock & Bee Lian will also sign up with the CDC for other WSQ courses.. to acquire even more knowledge and skills..

.. maybe some SME will employ them.

Anonymous said...

"I wonder sometimes why we have so much vested into electronics manufacturing when China has much more to offer? ....What do these workers acquire when HP, Seagate and Venture employ them? More skills?..."
Knowledge based??? 24/12/11 11:59

Do you wonder why we have casinos? What do workers acquire when casinos employ them?

You must be the 40% who did not vote PAP last election. Not much knowledge or even intelligence up there.

Anonymous said...

More than half of the 60% who voted for the pap are dumb and comatose. About 20% are extremely selfish as they are only interested in protecting their wealth and high income.
The 40% who voted against the pap are the brave,smart and caring ones.

Anonymous said...

"I wonder sometimes why we have so much vested into electronics manufacturing when China has much more to offer? ....What do these workers acquire when HP, Seagate and Venture employ them? More skills?..."
Knowledge based??? 24/12/11 11:59

sometimes it is to keep the competency of certain key sectors alive and not losing whatever important technological updates that come with it.

but definitely not for casinos even with the employment that come with it that anon 24/12/11 12:16 has suggested.

Brain said...

Anon 13:21

"sometimes it is to keep the competency of certain key sectors alive and not losing whatever important technological updates that come with it."

This is exactly what we need to review. Identify, confirm if it is still a "key" sector taking into account the current economic climate.

If it is still a key sector, what and how are we keeping up with it?
Have we moved beyond reproducing to inventing and ensuring we have jobs for our people?

What skills do our people need?

Analytical skills?
Psychomotor skills?
Creative skills?

All the above?

We probably need all.

Yet our wealth drivers are confined to activities such as property flipping, casino tax,COE and ERP pricing, insurance sales and dubious investment products and all the ancillary support.

What do we produce?

-HardDisk Drives? ( already surpassed by China)

-Aircraft maintainence? ( HKG )

-Oil Rigs ( perhaps the only one)

-Biomedical products? ( China again)

- Financial service? ( HKG surpasses)

In the last 15 years we have not grown any industry that is offering jobs to 50% of the workers.

The often quoted " mismatched skills".. is a spin. Growth of industry and growth of skill sets are interlinked and this is where we have failed.

This problem is now on us, because the planning was based on instant GDP growth. We reap what we sow.. and what is available is now dwindling.

Change of Government takes too long and there is no guarantee that a new one can deliver.

We need to produce what the rest of the world wants and need.

And its not Cheaper, Better, Faster

Its:

Reliable, Useful and Flexible



What is an example of this?

YOUR BRAIN

Veritas said...

Put it simply, under the current system, we are not able to be innovative.

It doesn't matter how small we are, we can still craft our niche, without FT other than those ultra top scientist.

Look at Switzerland, Iceland, Sweden and Finland...etc. They have develop indigeneous technology using their own small small pool of people.

Our problem lies in ST, DSTA, DSO, NCS...etc those GLCs.

Else where, when government want to get job done, they throw contract to their talent.

In SG, the contracts are thrown to these parasitic companies, which are notorious in Singapore for ultra politiking, suppressing talent, amakudari...etc

When they get the job, instead of developing technologies, these GLC simply sub it to MNCs like IBM, HP..etc and profit from the spread.

PAP knew what is going on definitely. But due to their selfishness, their greed and their wickedness, they found it better to trade the well being of Singaporeans to benefit those elites.

PAP should shut down these GLCs and develop talent local companies like ventures and creative. Use them as defence and government contractors.

This is how Boeing, Lockheed Martin, Samsung and Mitsubishi come into being.

Amused said...

Below are some numbers to show you that you can never save enough to retire!

Inflation @ 5.7% and CPF @ 2.5%
After 30 years, you would have lost 62.3% of your initial savings.

Inflation @ 5.7% and CPF @ 4.0%
After 30 years, you would have lost 40.2% of your initial savings.

If the government can't even preserve your purchasing power, it should allow you to invest on your own. I don't see how you can do worst than the current setup, especially when investments generally provide positive real returns over long haul.

DanielXX said...

Singaporean strengths and skills lie in:
- relatively skilled and adaptive in technology (but learning it, not inventing it)
- conversant in main business languages and relatively easy to train
- good work ethic, willing to work late and make sacrifices (unless the job doesn't pay well or is the dirty/dangerous type)
- temperament: not contradicting most of the time, quite compliant, respects authority

This is the reason why we have excelled in areas like aircraft maintenance where emphasis is on rigour, discipline and moderate technical skill, or in rigbuilding where emphasis is on systems integration and a solid technical base of labour without high requirements for new innovation. It also explains why we'll never be able to do well in fast-moving industries like Internet or technology where our people are not built for the kind of creative flair nor driving passion that is needed.

What can we succeed in? Try to find more industries with similar requirements like aircraft maintenance and/or rigs. I'm not about to tell the garment the answers. They should use their million-dollar minds to tiunk through it for themselves.

Anonymous said...

Dec long term average rainfall 287.4. Dec 2011 rainfall to Dec 23 274.4. Highest rainfall Dec 2006 765.9.

Looking at these numbers, how can the flood this time be due to higher rainfall ?

They have screwed up our drainage system big time.

Anonymous said...

"If the government can't even preserve your purchasing power, it should allow you to invest on your own. I don't see how you can do worst than the current setup, especially when investments generally provide positive real returns over long haul."

Frankly, they have the easier job in the world plus being the highest paid. First, the forced savings (cpf) is not getting the interest to even match the official 5.7% inflation (outside housing & transportation which have even higher inflation rate).

Yet the reason for rising minimum sum to be maintained in your OA & Medisave are due to inflation. & Singapore does not even have minimum wage which is adjusted regularly to reflect inflation like in some countries, at least as a symbolic gesture for businesses to take cue.

Anonymous said...

Highest rainfall Dec 2006 765.9.
Anon 24/12/11 16:18

But I don't remember Orchard Road flooded in Dec 2006.

Just on this data alone is enough to convince me that they screwed up our drainage system big time.

I don't know whether other systems also screwed up big time?? MRT???

Anonymous said...

"PAP should shut down these GLCs and develop talent local companies like ventures and creative. Use them as defence and government contractors."

Unlikely, GLCs are spread so widely in so many areas e.g transport, housing, commercial buildings, utilties, telco, medical that most of us will be kept so busy being price takers for whatever they ask. You can't shut down the GLCs, you have to shut down the former first because it is the main lever and the cause.

Anonymous said...

If you want to build a retirement portfolio, your money in the CPF is an important component.

It has its uses.

Besides cash savings and share investments, the money in the CPF behaves like treasury bills or even bonds.
It pays a decent ( under current climates!) interest rates.

Of course, there are people who do not have the luxury of having enough cash to invest let alone save. These people will definitely need help and support.

Inflation rates will swing wildly up and down.. its the overall annualised rates that need to be noted.

But I agree, 5% is high rate.

The Government is caught bewteen allowing the S$ to appreciate which will lower the rate a little or allow the rate to increase.. so that our exports and costs can be reasonably priced.

Our neighbours can afford ( for now) to subsidise their oil ( cooking or for fuel ) but ultimately, they will pay a higher price and experience much more pain when the oil runs out. ( civil unrest when the subsidies are removed )

It is a finite resource.

Really, there is no "correct" solution.. there is no template.

Money from our taxes can go into developing thinking skills and people management skills. The soft skills.

We cannot compete in the hard skills area.. this is the domain of China,India,Vietnam,Thailand,Phillipines.

We only have people.

This means: learning the soft skills.. all of it.

from customer psychology to motivating your 55 year old PMET to think and become 25 years old again.

When we excell in this, we will meet the needs of the next decade and beyond: the need to provide inspiration for people to do more than they ever imagine.

And we do this without using the rotan.

Veritas said...

///////
Our neighbours can afford ( for now) to subsidise their oil ( cooking or for fuel ) but ultimately, they will pay a higher price and experience much more pain when the oil runs out. ( civil unrest when the subsidies are removed )
///////

"subsidizing" their people is absolutely the right thing to do when crude oil and palm oil are produced in their own courtyard.

What other thing you can do with your own production? Sell it and earn FX?

Everyone knew FX denominated in USD is going to blow up. Its value is zero. Selling it to foreigners and earning $0 is treachery that only PAP is proud of bragging.

Our citizen are deprive of housing. In fact, every aboriginal Singaporean should be entitled a landed property. Today, PAP de facto given such properties to foreigners in exchange for ZERO value paper currency, printed out of thin air.

Forget all the economics you learn in school, they all contains hidden agenda.

Jamesneo said...

unfortunately this is only the start of a multidecade highly inflationary world brought about by declining crude oil supplies and global money printing.

Anonymous said...

Inflation rate too high?

Tell PAP in GE 2016.
Vote wisely.

Anonymous said...

With a government as dishonest as the current one, Singaporeans will be in for a hard time when the hyper inflation strikes. Just look at the way ShameMugan defended Seng Han Tong when the later has already admitted his mistakes and apologised. Defending the indefensible by twisting and turning like a snake is not the type of leader which Singaporeans deserve.
It is so clear that Seng Han Tong betrayed his subconscious bias against Malays and Indians when he added these two words when he tried to repeat what the SMRT EVP said. What the SMRT EVP said was that due to the low English proficiency of train drivers it will be difficult to implement some of the suggestions put forward like getting train drivers to be proactive in communicating with passengers in a crisis.
Why add the two words Malay and Indian if this is not a reflection of his inner bias ?

Anonymous said...

Freudian slip of the tongue.

Anonymous said...

Whether political parties, ministers or whatever lah, of course we want the best.

But in reality we have to be satisfied with the best available.

In the kingdom of the blind, the one eye jack is King because he is the best available to be King.

Therefore complain or criticise no use.

Anonymous said...

/In the kingdom of the blind, the one eye jack is King because he is the best available to be King./

and who do you have in mind is the one eye jack that is in our kingdom.

of course, in the real kingdom of all blind, anyone with half a vision will be king. however in our context, do you think that it has an analogical equivalent.

Anonymous said...

@ ANON:21.43
"Therefore complain or criticise no use."

Correct.
We can only vote wisely again in GE 2016.

Let's help another Minister "retire" into the private sector.