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
