Inflation expected to rise further in Q1

Inflation expected to rise further in Q1
By Dylan Loh | Posted: 10 January 2011 1632 hrs

SINGAPORE : Finance Minister Tharman Shanmugaratnam warns that inflation is expected to rise further in the first quarter of this year, but will moderate in subsequent quarters.

The Consumer Price Index hit 3.8 per cent in November 2010.

Mr Tharman said excluding the increase in COE premiums, inflation during January to November last year was about 1.3 per cent. This was due mainly to increases in various food and oil prices.

He said the government is watching the increase in living costs closely, and has provided significant assistance to low-income Singaporeans through various schemes over the last year.

The Finance Minister said: "Take for example a retiree couple living in a 3-room flat. They would have received a total of $1,200 in benefits last year. This would have exceeded the total increase in costs that such households would have faced as a result of rising food, utilities and other prices.

"This approach will continue in the upcoming Budget. The government will take into account the impact of inflation and the needs of low-income and retiree households when considering further transfers."

Mr Tharman said the best way to help Singaporeans will be to grow the economy in a sustainable way and raise skills to help grow wages, which will remain the government's central strategy.

- CNA /ls

- wong chee tat :)