What drove up CPI inflation in 2H11?

You're right if you guessed higher costs in everything -- from rents to vehicles to food.

CPI officially rose 5.5% in the latter half of 2011 yoy, according to Statistics Singapore in a release.

There was little separating the inflation impact on each income group, with all experiencing steeper expenses for basic necessities.

"CPI inflation for the lowest 20% and middle 60% income groups was 5.4 per cent for both while that for the highest 20% income group was 5.7 per cent," SingStat said.

"The increase in the CPI for the lowest 20% income group was largely driven by higher accommodation costs and electricity tariffs as well as dearer food. The price increases for the middle 60% and highest 20% income groups were mainly due to higher accommodation costs as well as higher prices of cars and food," it said.

"The increase in accommodation costs for all income groups reflected higher imputed rentals on owner occupied accommodation that has no impact on the cash expenditure of most households in Singapore who already own their homes," it added.

"Excluding imputed rentals on owner-occupied accommodation, the CPI for general households went up by 4.3 per cent compared with the same period in 2010. The corresponding inflation rates experienced by the lowest 20%, middle 60% and highest 20% income groups were 2.6 per cent, 4.0 per cent and 5.0 per cent respectively," it said further.

All in all, the total CPI inflation in 2011 registered at 5.2%.

"The lowest 20% income group experienced a lower increase in consumer prices at 4.7 per cent, compared to the middle 60% and highest 20% income groups which experienced CPI inflation of 5.1 per cent and 5.7 per cent respectively. The main contributors to CPI inflation for all the three income groups included
accommodation costs and food. Higher car prices also contributed to higher CPIs for the
middle 60% and highest 20% income groups," StatSing said.

"Excluding imputed rentals on owner-occupied accommodation, the CPI for general households rose by 4.2 per cent. The corresponding consumer price increases experienced by the lowest 20%, middle 60% and highest 20% income groups in 2011 were 2.2 per cent, 3.8 per cent and 5.1 per cent respectively," it said.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

Tags: CPI inflation, StatSing, CPI inflation second half of 2011, CPI inflation 2011