DPM Tharman: Most Singaporeans will not feel the effect of high inflation rate
Posted by temasektimes on April 30, 2012
Despite the shocking high inflation rate of 5.2 percent in the first quarter of the year, Deputy Prime Minister and Minister for Finance and Manpower Tharman Shanmugaratnam said most Singaporeans will not be affected by it as more than half of the headline inflation rate of 5.2 per cent came from higher COEs for cars and the effect of higher market rent on houses.
He added the increase in prices of daily necessities and essential services such as food and clothing have actually been much more moderate at three per cent or lower.
Speaking at the May Day Dinner, Mr Tharman said:
“The vast majority of Singaporeans, who already own their homes and are not buying a new car, will not feel the effects of these sharp increases. The increase in prices of daily necessities and essential services, such as food, clothing & footwear and education, has actually been much more moderate, at three per cent or lower. The inflation in actual household expenditures for most Singaporeans is hence lower than five per cent.”
Mr Tharman reassured Singaporeans that the government is monitoring the situation closely and the Monetary Authority of Singapore (MAS) has been strengthening the value of our dollar to reduce the impact of imported inflation.