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Coming to grips with inflation

According to Business Times

WHILE laments about rising business costs are pretty much a perennial complaint from the business sector, over the last 10 years and more, consumer price inflation has virtually been a non-issue in Singapore; since 1995, the annual rate has barely breached 2 per cent.

But there is now growing concern about rising costs - both on the consumer and business fronts – and particularly about the impact on the average Singaporean as well as the economy at large. The concern is not misplaced, even if the Department of Statistics (DOS) maintains that there has been no uptick in inflation in the two months since the 2-point increase in the Goods and Services Tax in July.

To be sure, the one-off GST hike is the primary reason for the leap in the Consumer Price Index (CPI), from a 2007 first-half average of 0.8 per cent, to 2.6 per cent in July. It’s important to note that the tax hike merely brings a one-off rise in price levels. Still, the July CPI figure is no ‘blip’ – going forward, the inflation rate will probably hover around this level, until mid-2008 when the effect of the GST increase disappears from the year-on-year comparisons.

As it turns out, the CPI increase picked up to 2.9 per cent in August, and then eased to 2.6 per cent last month. And prices actually dipped, by 0.3 per cent, from August to September, following a rise of the same magnitude from July to August. The months leading up to July saw similar CPI changes – which has the DOS pronouncing ‘no uptick’, that inflation has remained stable.

Be that as it may, other factors are at play to nudge the CPI – and other cost indices – upwards in recent and coming months. Top of the list would be record-high oil prices, which crossed US$90 a barrel last week. The spiral effects of surging oil prices reverberate across the entire economy, especially for oil importers like Singapore, and eat into corporate margins.

But while oil prices grab the headlines, economists warn of a possibly more insidious source of imported inflation: escalating global food prices. Particularly for non-food producers like Singapore, there can be little, if any, escape or respite.

Already, in September, the food component of Singapore’s CPI – the biggest item at 23 per cent – rose 3.7 per cent as the costs of fresh vegetables, fruits, seafood, milk powder, as well as hawker and restaurant food, went up. Also, market forecasts indicate that the spike in global grain prices – the key trigger of the rise in global food price inflation – is not about to ease anytime soon. And food accounts for a bigger portion of the lower-income groups’ household spending.

Adding to the inflationary pressures are otherwise positive factors associated with an economic boom: a tight labour market, rising wages, rising rentals, scarce capacity. Allowing a faster pace of currency appreciation will help contain rising imported inflation. Exporters may cry foul, but the alternative could be worse: an overheated economy with (by Singapore standards) intolerably high inflation.

- Time to allow family to have chickens raise at homes!! Maybe silence them so they don’t make too much noise!

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29 October 2007 at 18:27 - Comments
  • Jimmoo
    Maximum ERP charge goes up to $5 from Nov 5

    CAR prices may be at their lowest in over a decade, but it is getting costly to drive. The Land Transport Authority on Monday announced that the Electronic Road-Pricing (ERP) rates will go up by 50 cents from Nov 5 – the third big-scale increase this year.

    The latest adjustment brings the cost of entering the Central Expressway via the Pan-Island Expressway between 8.30am and 9am to a stiff $5. This route made news early this year when its ERP charge went up to $4. It was then raised to $4.50 in the middle of the year, before the latest record price.

    Those who want to avoid paying $5 should wake up earlier. The charge for going through this gantry between 7.30am and 8am is $3.50 (also up 50 cents).

    Central Expressway users once again bear the brunt of charges. Those passing the gantry north of Braddell Road between 7.30am and 8am will pay $2.50 from Nov 5; and those passing the gantry south of Braddell Road between 8.30am and 9am will pay $4 from that day. The $4 charge also applies to those joining the CTE from Serangoon and from Balestier.

    Next, the Bendemeer Road rate will rise to $1.50, while the Thomson Road rate will go to $2 from Nov 5.

    Motorists will have to contend with these higher usage charges on the back of higher fuel bills. Since June, there has been no fewer than six rounds of pump price increase, bringing the cost of two petrol grades past the $2 level.

    Motorists who have been bracing themselves for the set of new gantries coming on on Nov 1 will now have temporary respite. The LTA has decided to postpone the starting day to Nov 5, to align with the new ERP rates.

    The next ERP rate revision will be in November, when prices are expected to fall in line with lighter traffic because of the year-end school holidays.


    http://www.asiaone.com/Motoring/News/Story/A1Story20071029-32921.html

    Wow $5, that’s a huge price to pay to drive. Well, for those drivers, you can avoid this surcharge by waking up a bit early before 7.30am.
  • Jimmoo
    Maximum ERP charge goes up to $5 from Nov 5 CAR prices may be at their lowest in over a decade, but it is getting costly to drive. The Land Transport Authority on Monday announced that the Electronic Road-Pricing (ERP) rates will go up by 50 cents from Nov 5 – the third big-scale increase this year.The latest adjustment brings the cost of entering the Central Expressway via the Pan-Island Expressway between 8.30am and 9am to a stiff $5. This route made news early this year when its ERP charge went up to $4. It was then raised to $4.50 in the middle of the year, before the latest record price.Those who want to avoid paying $5 should wake up earlier. The charge for going through this gantry between 7.30am and 8am is $3.50 (also up 50 cents).Central Expressway users once again bear the brunt of charges. Those passing the gantry north of Braddell Road between 7.30am and 8am will pay $2.50 from Nov 5; and those passing the gantry south of Braddell Road between 8.30am and 9am will pay $4 from that day. The $4 charge also applies to those joining the CTE from Serangoon and from Balestier.Next, the Bendemeer Road rate will rise to $1.50, while the Thomson Road rate will go to $2 from Nov 5.Motorists will have to contend with these higher usage charges on the back of higher fuel bills. Since June, there has been no fewer than six rounds of pump price increase, bringing the cost of two petrol grades past the $2 level.Motorists who have been bracing themselves for the set of new gantries coming on on Nov 1 will now have temporary respite. The LTA has decided to postpone the starting day to Nov 5, to align with the new ERP rates.The next ERP rate revision will be in November, when prices are expected to fall in line with lighter traffic because of the year-end school holidays. http://www.asiaone.com/Motoring/News/Story/A1Story20071029-32921.htmlWow $5, that’s a huge price to pay to drive. Well, for those drivers, you can avoid this surcharge by waking up a bit early before 7.30am.
  • Jimmoo
    Prostitute: Singapore men are stupid

    Singaporean men are considerate, generous and yet, stupid.

    Such was the conclusion of a former Geylang sex worker, when she revealed her thoughts and feelings about working in Singapore’s red light district.

    The 36-year-old woman, who is not identified, says she is from Hunan, China, had personally delivered an open letter to Lianhe Wanbao. It was featured on the Chinese evening daily’s front page yesterday. The letter was titled: The Men and Women of Geylang.

    She observes in her letter that the attractive Geylang streetwalkers attract men’s attention, and Singaporean drivers like to pass by Geylang to ogle at the scene. She also notes that while Singaporean men are generally lowly-educated and not very rich, they know how to maintain themselves, are polite and well-mannered.

    The woman was dressed simply in a white shirt and shorts, with light makeup and slightly permed hair. She had a calm, quiet manner, and spoke with a gentle tone to the Lianhe Wanbao reporter.

    She said she wanted to chronicle her four months working as a sex worker before returning to China. Having spent time here in Singapore, she claims that she had feelings for the country and the letter included her thoughts and reflections as well as her personal experiences in Geylang. She even had thoughts of settling down with a local man, but decided against it because Singaporean men were naive and fell easily for the charms of streetwalkers.

    The woman claimed that she turned to vice after she could not find work here. She said she used to own a factory in Hunan, but encountered difficulty after her husband was sentenced to 15 years’ jail for corruption in China. She became a taxi driver to support her family, but was involved in an accident and had to pay compensation of about $20,000.

    But she had felt ashamed initially about becoming a sex worker. But after her 11-year-old son in China asked if she had found a job, she felt so sad that she decided to cast aside her pride.

    In the letter, which took her a week to complete, she penned her thoughts about the men who are her clients.

    “No matter how well you treat these streetwalkers, they will always see you as a fool. When you sympathise with them, you will definitely offer them money to support them. But behind your backs, they call you stupid and laugh at how they have just conned you of your money.”

    Working from 8pm to 7am every day, she would get 7 to 8 customers on a good night, and charged $40 to $50 per session. Customers would give tips occasionally too. In a month she can earn $3,000 to $4,000. But she stressed that she was not proud of how she earned her keep.

    She had a word of advise for her clients, who come from all walks of life: “Don’t spend all your money in a moment of lust, because you have also worked very hard for it. You are not only hurting your health, but also your wallet. You are also putting your family’s harmony at risk.”

    http://www.asiaone.com/Just%2BWoman/News/Story/A1Story20071029-32859.html

    I am sure my friend Simon has a lot to comment on this.
  • Jimmoo
    Prostitute: Singapore men are stupid Singaporean men are considerate, generous and yet, stupid.Such was the conclusion of a former Geylang sex worker, when she revealed her thoughts and feelings about working in Singapore’s red light district.The 36-year-old woman, who is not identified, says she is from Hunan, China, had personally delivered an open letter to Lianhe Wanbao. It was featured on the Chinese evening daily’s front page yesterday. The letter was titled: The Men and Women of Geylang.She observes in her letter that the attractive Geylang streetwalkers attract men’s attention, and Singaporean drivers like to pass by Geylang to ogle at the scene. She also notes that while Singaporean men are generally lowly-educated and not very rich, they know how to maintain themselves, are polite and well-mannered.The woman was dressed simply in a white shirt and shorts, with light makeup and slightly permed hair. She had a calm, quiet manner, and spoke with a gentle tone to the Lianhe Wanbao reporter.She said she wanted to chronicle her four months working as a sex worker before returning to China. Having spent time here in Singapore, she claims that she had feelings for the country and the letter included her thoughts and reflections as well as her personal experiences in Geylang. She even had thoughts of settling down with a local man, but decided against it because Singaporean men were naive and fell easily for the charms of streetwalkers.The woman claimed that she turned to vice after she could not find work here. She said she used to own a factory in Hunan, but encountered difficulty after her husband was sentenced to 15 years’ jail for corruption in China. She became a taxi driver to support her family, but was involved in an accident and had to pay compensation of about $20,000.But she had felt ashamed initially about becoming a sex worker. But after her 11-year-old son in China asked if she had found a job, she felt so sad that she decided to cast aside her pride.In the letter, which took her a week to complete, she penned her thoughts about the men who are her clients.”No matter how well you treat these streetwalkers, they will always see you as a fool. When you sympathise with them, you will definitely offer them money to support them. But behind your backs, they call you stupid and laugh at how they have just conned you of your money.”Working from 8pm to 7am every day, she would get 7 to 8 customers on a good night, and charged $40 to $50 per session. Customers would give tips occasionally too. In a month she can earn $3,000 to $4,000. But she stressed that she was not proud of how she earned her keep.She had a word of advise for her clients, who come from all walks of life: “Don’t spend all your money in a moment of lust, because you have also worked very hard for it. You are not only hurting your health, but also your wallet. You are also putting your family’s harmony at risk.” http://www.asiaone.com/Just%2BWoman/News/Story/A1Story20071029-32859.html I am sure my friend Simon has a lot to comment on this.