Overall inflation in Singapore rises 1.5% year-on-year in first half of 2021

SINGAPORE – Households had to shell out more for cars, food, petrol, accommodation and tuition, plus other fees, in the first half of this year, as overall inflation rose 1.5 per cent year-on-year.

These price increases were partially offset by cheaper electricity, clothing and footwear.

The growth in overall inflation was partly due to low base effects as all-items inflation had fallen by 0.2 per cent year-on-year in the same period last year, said the Department of Statistics (SingStat) on Friday (July 23).

Inflation climbed by 0.9 per cent year-on-year for the lowest 20 per cent, and 1.4 per cent for the middle 60 per cent, of household income groups.

The hike was 1.9 per cent for the highest 20 per cent.

If imputed rents on owner-occupied accommodation are excluded, inflation increased by 0.8 per cent for the lowest 20 per cent of income groups, stayed the same at 1.4 per cent for the middle group and rose to 2.2 per cent for the top 20 per cent.

SingStat noted that the bottom 20 per cent of income groups saw the smallest increase excluding owner-occupied accommodation, compared to the middle and highest groups.

This was because lower costs of electricity had a larger dampening impact on that group, since electricity constituted a higher share of the group’s expenditure basket.

Higher car and petrol prices also had a smaller impact, given that these items accounted for a smaller share of the group’s expenditure basket.

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