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Singapore: Highest income groups most impacted by rise in consumer prices in first half of 2022
SINGAPORE – The highest income groups in Singapore saw the largest increase in consumer prices in the first half of 2022, compared to households from other income groups.
Those whose household incomes were in the highest 20 per cent bracket experienced a 6 per cent year-on-year increase in consumer prices during the period, according to data released by the Department of Statistics (Singstat) on Monday (July 25).
This is higher compared to the 4.2 per cent rise in prices experienced by the lowest 20 per cent, and 4.9 per cent for the middle 60 per cent.
This is because cars, petrol and other transport services, which have become significantly more expensive this year, had a larger impact on the spending of this group of top earners, compared to the other income groups.
Such items accounted for a bigger share of its expenditure basket, noted Singstat.
Overall, the main contributors to the inflation rates for all three household income groups were cars, accommodation, food, petrol, electricity and other transport services.
However, households paid less for telecommunication services in the first six months of the year, compared to the same period last year.
Inflation has been picking up here and around the world as the economy recovers from the Covid-19 lull.
Singapore’s latest consumer price index (CPI) for all items between January to June rose 5.2 per cent, higher than the 3.1 per cent rise in the second half of 2021.
Excluding rentals on owner-occupied accommodation, the CPI went up by 4.1 per cent year-on-year for the lowest 20 per cent income group, 5 per cent for the middle income, and 6.4 per cent for the highest income group.
Source: https://www.straitstimes.com/business/highest-income-groups-most-impacted-by-rise-in-consumer-prices-in-first-half-of-2022