More than half of Singaporeans think the government is handling inflation “badly,” according to a new poll, highlighting challenges facing the country’s leaders as the nation undergoes a political transition.
About 55% of respondents in the mid-May survey conducted by pollster Blackbox Research Pte. said the government was handling everyday price rises “badly.” Almost 20% said it was tackled “very badly,” while 36% felt it was dealt with “quite badly.” At the same time, 37% said the government was performing “quite well” and 7% said “very well.”
More than nine in 10 Singaporeans said inflation has affected their lives, with 37% indicating a “significant” impact, according to the poll based on interviews with 758 people aged 20 and above. It has a margin of error of 3%.
That sentiment is an indication of the challenges finance minister and prime minister in-waiting Lawrence Wong faces in convincing voters that the ruling People’s Action Party is doing enough to tackle sharp price rises. Many governments and central banks are acting in tandem to shield their citizens from the cost-of-living crisis sweeping the world.
“A perfect storm has emerged post-pandemic that will test the Singaporean government over the next 12 months as it not only seeks to bring about a speedy recovery but also bed in new political leadership,” said David Black, the founder and chief executive officer of Blackbox.
Singapore’s cost pressures have been persistent this year, prompting the central bank to tighten monetary policy and revise expectations for price-growth that could crimp the broader post-Covid growth recovery. While officials are hopeful that nominal wage growth will outpace inflation this year, economists see prices remaining elevated in the city-state through 2023.
Global inflation, exacerbated by supply-side pressures caused by Russia’s invasion of Ukraine, has filtered through to consumers worldwide, even as early signs of inflation peaking appear.
In an indication of the risks facing the city-state’s economic recovery as it emerges from strict Covid restrictions, respondents said they have cut back on their spending due to inflation, with nearly nine in 10 spending less on clothing, restaurants, and entertainment at cinemas and theaters.
Wong has committed to help residents to cope with consumption tax increases set to kick in initially next year in his maiden budget delivered in February.
About 57% of low-income respondents -- earning below S$2,500 ($1,800) a month -- said the government was doing badly, while 59% of medium-low income households, earning S$,2500 to S$6,600, felt the same, the survey showed.
Other key points from the poll include:
• Singaporeans are feeling the most inflation pain in petrol prices (35%), followed by utility prices (34%), and at supermarkets (28%)
• 66% of Singaporeans say they feel negatively about rising public housing prices
• Only 44% believe that they will be economically better off this year than 2021
Oddly ST allowed the publication of Harry Ong's letter which highlighted the glaring contradictions in DOS' so-called study of hawker food prices:
https://www.straitstimes.com/opinion/forum/forum-rising-prices-of-hawker-food
Up, up and away 🚀
2024: Higher GST, more price hikes, and even rising costs for gas, electricity and water
SINGAPORE: For the first quarter of 2024, Singaporeans will not only face the increase in the Goods & Services Tax from 8 to 9 per cent but will also need to deal with higher electricity and gas prices, The Straits Times (ST) reported on Friday (Dec 29).
These utilities are affected by the jump in carbon taxes from S$5 to S$25 per tonne of emission. The price of water is also set to go up in April, and a second increase in water prices has been set for April 2025.
ST noted that SP Group will raise electricity tariffs by 5 per cent for the first quarter of next year, going from 31 cents to 32.58 cents per kilowatt-hour (kWh). CityEngergy has also said that town gas tariffs are increasing by around 4 per cent, from 24.21 cents to 25.23 cents per kWh.
However, the higher tariffs will not affect customers with fixed-price plans until their plans are renewed.
“The carbon tax is part of a suite of measures to support Singapore’s transition to a low-carbon economy, by steering consumers and producers away from carbon-intensive goods and services, holding businesses accountable for their emissions, and enhancing the business case for the development of low-carbon solutions,” ST quotes a spokesperson from the Energy Market Authority (EMA) as saying.
If the total cost of the carbon tax is to be shouldered by customers of utility retailers, their bills are likely to go up by S$4 per month for a four-room HDB flat, said the National Climate Change Secretariat earlier this month.
The EMA told ST that the vast majority of electricity in Singapore is from imported natural gas, which means that the country is affected by fluctuations in the global market.
“As we continue in our energy transition, natural gas, which is the cleanest form of fossil fuels, is expected to remain as the dominant fuel for Singapore in the medium term,” EMA added.
The price of water is also set to rise beginning from April of next year by 20 cents, followed by a 30-cent increase in April 2025.
There is, however, provision for rising costs such as the ones mentioned above, as households in Singapore that qualify will get $20 more each quarter in U-Save rebates that would help with higher costs, including water.
https://theindependent.sg/2024-higher-gst-more-price-hikes-and-even-rising-costs-for-gas-electricity-and-water
Electricity and gas tariffs to increase in fourth quarter due to higher costs
SINGAPORE – Gas and electricity prices will go up for the next three months due to higher fuel and energy costs.
The electricity tariff will go up by an average of 3.7 per cent, or 0.98 cent per kilowatt-hour (kWh), before goods and services tax (GST), compared with the current quarter, said SP Group on Friday.
For households, between Oct 1 and Dec 31, the electricity tariff will increase from 27.74 cents per kWh in the current quarter to 28.7 cents per kWh, excluding GST.
Including GST, the rate for the quarter will be 31 cents per kWh.
The average monthly electricity bill for families living in four-room Housing Board flats will increase by $3.57 before GST, said SP Group.
The electricity tariff is calculated using four components. It includes the cost of energy, which takes into account the cost of imported natural gas, and the cost of operating the power stations, among others.
SP Group said it reviews electricity tariffs every quarter, based on guidelines set by the Energy Market Authority (EMA).
Meanwhile, City Energy, the producer and retailer of piped gas, said the gas tariff for households will go up by 0.51 cent per kWh before GST.
Excluding GST, the rate will rise from 21.91 cents per kWh to 22.42 cents per kWh for the period from Oct 1 to Dec 31. With GST, the rate will be 24.21 cents per kWh.
This is due to an increase in fuel costs compared with the previous quarter, said City Energy.
The revised gas tariffs have been approved by EMA, which also regulates the gas industry.
The increases follow a water price hike announced on Wednesday.
The price of water in Singapore will go up by 50 cents per cubic m by April 2025.
These increases come amid rising living costs, an increase in GST this year and a planned hike in transport fares.
On Thursday, Deputy Prime Minister and Finance Minister Lawrence Wong announced a $1.1 billion Cost-of-Living Support Package to provide relief for all Singaporean households, with more support for lower- to middle-income families. It builds on the measures announced at Budget 2023.
As part of the package, some 2.5 million adult Singaporeans will receive an additional cash payout of up to $200 in December, and every Singaporean household will receive an extra $200 in Community Development Council vouchers in 2024 to help with the rising cost of living.
Also, some 950,000 Singaporean HDB households will receive an additional one-off half-month service and conservancy charges (S&CC) rebate in January 2024, together with the regular S&CC rebates.
There will also be additional subsidies of about $300 million in 2024 to cover the deferred fare adjustment quantum of 15.6 cent that will be carried over to future fare review exercises, as announced by the Public Transport Council on Sept 18.
The additional subsidies will help to moderate the increase in fares and pay for the higher costs of providing public transport services due to the continued increase in energy prices in 2022, core inflation and strong wage growth, the Ministry of Finance said previously.
https://www.straitstimes.com/singapore/electricity-and-gas-tariffs-to-increase-in-fourth-quarter-due-to-higher-costs
Singapore to raise water prices by 18% over two phases in 2024 and 2025
• The price of water for most households will increase from S$2.74 for every 1,000 litres used to S$3.24 in 2025, a rise of about 18 per cent
• HDB households and non-HDB households will see an average increase of S$7 and S$8 a month respectively
• Deputy Prime Minister Lawrence Wong will announce additional cost-of-living support measures for Singaporean households on Thursday
• Increase in price to cover operating costs and long-term investments in water infrastructure, PUB says
SINGAPORE: Water prices in Singapore will rise by about 18 per cent over the next two years, national water agency PUB said on Wednesday (Sep 27).
Potable water currently costs S$2.74 (US$2.01) for every 1,000 litres, or per cubic metre, before tax for most households.
The increase translates to an additional 50 cents per cubic metre. It will be split over two phases: 20 cents on Apr 1, 2024 and 30 cents on Apr 1, 2025.
After the 2025 revision, three in four households will see a less than S$10 increase in their monthly water bills, PUB said. For businesses, three in four will see their water bills rise by less than S$25 a month while three in four hawkers will foot an increase of less than S$15 monthly.
The 4 per cent of households that consume much more water – exceeding 40 cubic metres a month – will see a higher increase in their bills. For every cubic metre of water above the threshold, the rate they pay will rise by 70 cents, from S$3.69 now to S$3.94 next year and S$4.39 the year after.
The average household consumes about 15 cubic metres of water each month.
The price of NEWater – the treated reclaimed wastewater used mainly for industrial and air-con cooling purposes – will increase by 17 cents per cubic metre; also in two stages: 8 cents on Apr 1, 2024 and 9 cents on Apr 1, 2025.
Water prices were last increased by 30 per cent in two phases from 2017, and before that in 2000.
PUB pointed to how the costs of producing and supplying water have increased "substantially" since 2017, due to external pressures.
Average electricity market tariffs have increased by about 37 per cent; construction costs have risen by 35 per cent; expenses for essential chemicals in water treatment have grown by 33 per cent; and maintenance expenses have also gone up by 18 per cent due to higher manpower costs, said PUB.
There are three components to the pricing: A tariff covering costs incurred in the water production process; a water conservation tax which is a percentage of the tariff and meant to encourage water conservation; and a waterborne tax for the cost of treating used water and maintaining the used water network.
All three components will be increased in this round for domestic and non-domestic potable water. For NEWater, only the waterborne tax component is increasing.
More at https://www.channelnewsasia.com/singapore/water-prices-singapore-increase-two-phases-vouchers-3796726
SINKIES SONG BOH?
Singapore's core inflation rises to 5.5% in January, highest since November 2008
SINGAPORE: Singapore's core inflation rose to 5.5 per cent year-on-year in January, the highest since November 2008, official data showed on Thursday (Feb 23).
This was up from the 5.1 per cent recorded in December last year. Core inflation had remained unchanged for three months from October to December last year.
The rise in January was driven by the Goods and Services Tax (GST) rate increase, as well as higher inflation for services, food and retail and other goods, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).
The core consumer price index rose by 0.8 per cent on a month-on-month basis, due in part to the one-off effect of the one percentage point GST increase and the seasonal effects associated with Chinese New Year, added MAS and MTI.
The last time Singapore's core inflation hit 5.5 per cent was in November 2008.
Core inflation excludes accommodation and private transport costs.
The headline consumer price index, or overall inflation, was 6.6 per cent year-on-year in January, higher than the 6.5 per cent recorded in December 2022. This reflected the rise in core inflation and the higher accommodation inflation.
FOOD, SERVICES INFLATION RISES
In January, food inflation rose to 8.1 per cent year-on-year from 7.5 per cent in December, mainly due to a steeper increase in the price of prepared meals.
Services inflation grew to 4.2 per cent from 3.7 per cent in the preceding month, rising on the back of stronger price increases for outpatient services and tuition and other fees.
"At the same time, the cost of telecommunication services and airfares rose, a reversal from the year-on-year decline in the preceding month," said MAS and MTI.
Inflation for retail and other goods also picked up from 2.8 per cent in December to 3.3 per cent in January, mainly due to a faster pace of increase in the prices of clothing and footwear, household durables, as well as alcoholic drinks and tobacco.
Accommodation inflation in January edged up from 4.7 per cent in December to 5 per cent in January as a result of a larger increase in housing rents.
Electricity and gas inflation fell from 16.5 per cent in December to 11.5 per cent in January due to smaller increases in electricity and gas tariffs.
Due to lower energy costs, the electricity tariff for households fell to 31.27 cents per kilowatt hour (kWh) inclusive of GST for the first quarter of 2023, from 31.82 cents per kWh in the preceding quarter.
The gas tariff for households was revised down to 23.59 cents per kWh inclusive of GST, from 24.32 cents per kWh over the same period.
On a year-on-year basis, the increase in electricity tariff eased to 14.9 per cent in the first quarter of 2023 from 23.3 per cent in the preceding quarter. The increase in the gas tariff slowed to 9.1 per cent from 19.4 per cent over the same period.
Private transport inflation eased in January to 14.3 per cent as car and petrol prices rose at a slower pace.
More at https://www.channelnewsasia.com/singapore/singapore-core-inflation-january-2023-highest-november-2008-3298636
S'pore core inflation near 14-year high of 5.1% in August on more costly food, services
SINGAPORE - Consumer prices in Singapore continued to climb in August and core inflation hit a near 14-year high, on the back of more costly services and food.
Core inflation, which excludes costs of private transport and accommodation and reflects the expenses of Singaporean households more accurately, hit 5.1 per cent year on year, up from 4.8 per cent in July. This marks its highest level since it touched 5.5 per cent in November 2008.
The August figure was above the Bloomberg poll of 5 per cent rise.
Also up is headline consumer price index or overall inflation for August.
It came in at 7.5 per cent, matching the 14-year high in June 2008. In July, it was 7 per cent. The increase mainly reflected higher transport inflation, besides the pickup in core inflation.
The August headline inflation was higher than Bloomberg's estimates of 7.2 per cent in July.
For the full year, the headline inflation forecast remains unchanged at between 5 per cent and 6 per cent, while core inflation is projected to average between 3 per cent and 4 per cent, said the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) on Friday.
Their data showed that private transport costs had the biggest increase to 24.1 per cent in August from 22.2 per cent in July. This was due to a faster pace of increase in car prices.
Food inflation came in at 6.4 per cent in August, up from 6.1 per cent the previous month, lifted by steeper rises for food services and non-cooked food.
Services inflation crept up to 3.8 per cent mainly because of a stronger pickup in holiday expenses.
Both accommodation inflation and costs of retail and other goods edged up slightly to 4.7 per cent and 2.9 per cent, respectively.
Electricity and gas inflation was the only category that bucked the trend to ease to 23.9 per cent in August from 24 per cent last month due to a smaller rise in gas prices.
Both MAS and MTI said inflationary pressures will remain elevated in the months ahead.
https://www.straitstimes.com/business/economy/singapore-core-inflation-hits-near-14-year-high-of-51-in-august-on-faster-rise-in-food-services-prices
S'pore core inflation rises to 4.8% in July 2022
Singapore's core inflation rose to a new high of 4.8 per cent in July 2022, according to data from the Department of Statistics on Aug. 23, up from 4.4 per cent in June.
It marks the second straight month in which it exceeded the 4 per cent rate last breached during the global financial crisis.
Headline inflation: 7%
July’s headline inflation, which includes accommodation and private transport costs, was 7 per cent, up from 6.7 per cent in June and representing another multi-year high.
But the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) maintained their full-year forecast ranges of 3 to 4 per cent for core inflation and 5 to 6 per cent for headline inflation.
They had raised these forecasts in July.
All up
MAS and MTI said in a joint statement that increasing inflation was due to a larger increase in electricity and gas tariffs, which recorded the most significant increase, going up by 24 per cent from the year before, in an acceleration from June’s 20 per cent increase.
Food inflation was 6.1 per cent, up from 5.4 per cent in June, due to price increases for both cooked and non-cooked food.
Private transport and accommodation inflation also intensified in July.
Private transport inflation rose to 22.2 per cent due to an increase in car prices, up from 21.9 per cent in June.
Accommodation inflation was 4.6 per cent, up from 4.2 per cent before, as housing rents rose at a faster pace.
Price increases for retail and other goods rose at a slower rate of 2.8 per cent, compared to 3.1 per cent in June.
Inflation to stay elevated till end-2022
MAS and MTI said they continue to expect core inflation to stay elevated over the next few months before easing towards the end of the year.
Car and accommodation cost increases are also likely to stay firm for will the end of 2022, they added.
Domestic businesses are likely to pass on cost increases to consumer prices, with the labour market remaining tight, and with consumer spending firm, MAS and MTI said.
The inflation outlook by MAS and MTI highlighted that global inflation is likely to stay elevated in the near term, even though global supply chain frictions have eased slightly and some commodity prices have levelled off.
https://mothership.sg/2022/08/singapore-core-inflation-july-2022
When the going gets tough, you may wish to consider setting them strawberries in your household 'free' ;)