8
Nov
2007
Inflation : How will it affect our lives?
A lot of us are starting to take notice that a cup of coffee at the local coffeeshop now cost 10 cents more, a can of luncheon meat used to sell for $1.30 early this year is now $2.50 at NTUC Fairprice.
Inflation is here, and economists are saying that it will be 4% next year. You can read the full story here. http://www.straitstimes.com/Free/Story/STIStory_174085.html
Singapore has not seen inflation at 4% or higher since the early 1980s. Back then, Singapore economy was growing at a much faster rate. Now, we have a rapidly slowing world economy. And since Singapore economy is export driven, the question is whether Singapore can sustain a high enough growth rate to stave off inflation?
Check out historical inflation and economic growth data of Singapore, compliments of our government.
Inflation : http://www.singstat.gov.sg/stats/themes/economy/hist/cpi.html
GDP : http://www.singstat.gov.sg/stats/themes/economy/hist/gdp1.html
How will all these affect our lives? Who can be sure. But it seems like tough times are ahead, it wouldn’t hurt to start saving for rainy days today.
Oh … and remember not to bark at the coffeeboy if he keeps your $1 coin for that cup of coffee.
