Monday, March 23, 2009

Inflation is up 1.9%

These are the Singapore inflation rates for 2009:
January: 2.9%
February: 1.9%

Food and Housing is leading the charge, rising by 4.3% and 6.6% respectively year on year. Inflation has been treading downwards, where the biggest change is actually in the transport & communication, down by a hefty 5%. Food and housing have also moderated downwards compared to last month. Healthcare costs are still very resilient, with no change from last month.

The peak of inflation was reached in April last year. Co-incidentally, this year April is also the month where there will be a 4.6% reduction of transport fares. Most probably, there will also be a reduction in electricity tariffs in that month. It's highly possible that inflation will be below 1% from April onwards, and may continue for at least 3 months.

That's provided that property values are not revalued. Currently, the only areas that are holding inflation up is mainly housing due to the revaluation. Otherwise, deflation will be a possibility.

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