, Singapore

Why the inflation ease is good news for lower income groups

Income gap between highest and lowest dipped to 0.4%pts.

According to OCBC, across the different income groups, the pullback in inflationary pressures have come as a relief as headline CPI eased from 4.1% yoy in 2H 2012 to 2.8% in 1H 2013. 

Moreover, the inflation gap between the highest and lowest income group has narrowed to 0.4% points – in 1H 2013, the lowest 20% faced a 3.1% inflation versus the 2.7% for the highest 20% income groups.

Here's more from OCBC:

This is down from the 1.4% and 1.0% gap seen in the full-year 2012 and 2011 respectively, as headline CPI moderated from the 4.6% yoy and 5.2% yoy handles.

Inflation excluding imputed rentals on owner-occupied housing for the lowest 20% income group fell to just 1.3% yoy vis-à-vis the 2.5% yoy for the highest 20% income group in 1H 2013, which is also a fraction of the 3.5% yoy print seen in 2012 for the same income group.
 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.