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     FrontPage Edition: Thu 30 August 2007

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Singapore CPI for households in different income groups in 1st half 2007



January -- June 2007
Inflation rate for lowest 20% income group eased during first half of 2007
During the first half of 2007, the inflation rate for households in the lowest 20% income group eased to 1.1 per cent over the same period of 2006.
The corresponding rates experienced by the middle 60% and highest 20% income groups were 0.8 per cent and 0.7 per cent respectively.
The difference in the inflation rates between the lowest 20% and the higher income groups also narrowed.
This was due primarily to lower electricity tariffs and domestic refuse removal fees which have relatively larger weights for the low income group.
The main items contributing to the price increases during the first six months of 2007 for all income groups were taxi fares, cooked food, holiday travel, accommodation, school & tuition fees as well as hospitalization fees.
These price increases were partially offset by lower electricity tariffs, car prices, domestic refuse removal fees, as well as cheaper petrol.
For the general households, the CPI rose by 0.8 per cent during Jan -- Jun 2007. The impact of the 2 percentage points increase in the Goods and Services Tax on the CPI will be reflected in the second half of 2007.

Source: Press Release 29 Aug 2007

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