Repost:
By Chua
Yini | Yahoo!
Newsroom – Mon, Apr 30, 2012
Deputy Prime
Minister and Finance Minister Tharman Shanmugaratnam said the high
inflation rate does not reflect the reality for average
Singaporeans. (AFP file photo)
The high inflation rate does not
reflect the reality for average Singaporeans, said Deputy
Prime Minister and Finance Minister Tharman
Shanmugaratnam.
Speaking at the May Day dinner on Sunday, Tharman said that, while
the Consumer
Price Index (CPI) rose by about 5.2 per cent in March in
this year from the same month last year, “it does not mean that the
average Singaporean will feel this high inflation”.
He explained that people who already own homes and are not buying
new cars are not affected, because more than half of the inflation
is due to higher cost of new car ownership and higher housing
rents.
Tharman added that the increase in prices for daily necessities and
essential services, such as food, clothing and education, has been
“much more moderate”, at 3 per cent or lower.
Therefore, the inflation in actual household expenditures for most
Singaporeans is lower than 5 per cent, he pointed out.
Nevertheless, he said the government is taking steps to tame
inflation and is closely monitoring the situation, he
said.
For example, the Monetary
Authority of Singapore (MAS) has been gradually
strengthening the value of the Singapore dollar to reduce the
impact of imported inflation.
In addition, the government is providing some help for lower-income
Singaporean households to cope with the rising cost of living,
added Tharman, citing the recently introduced goods
and services tax (GST) vouchers.
However, he said Singapore can expect more cost pressures as
business wages rise amid the tight labour market.
“There will be pressure on consumer prices this year and the next
few years,” he said.
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