Singapore Releases December 2010 Consumer Price Index
The consumer price index in December 2010 rose by 0.2 per cent over November 2010.
This was primarily due to higher costs of transport, food, as well as “recreation & others”.
In contrast, housing cost declined by 1.1 per cent, on account of lower service and conservancy charges as rebates were given in December 2010.
For the year 2010, the consumer price index rose by 2.8 per cent compared with 2009.
The consumer price index in December 2010 rose by 0.2 per cent over November 2010. Increases in the costs of transport, food, as well as “recreation & others” more than offset the decline in housing cost. Excluding accommodation costs, the consumer price index was 0.5 per cent higher.
Compared with a year ago, the consumer price index increased by 4.6 per cent in December 2010 due largely to higher costs of transport, housing and food. Excluding accommodation costs, the consumer price index went up by 4.3 per cent.
For the year 2010, the consumer price index rose by 2.8 per cent compared with 2009. Excluding accommodation costs, the consumer price index for 2010 grew by 3.3 per cent.
Month-on-Month Changes
The consumer price index in December 2010 rose by 0.2 per cent compared with November 2010 as a result of higher costs of transport, food, as well as “recreation & others”.
The cost of transport increased by 2.6 per cent owing to higher prices of cars and petrol. Food prices went up by 0.2 per cent due mainly to higher cost of prepared meals. Higher holiday travel cost raised the index for “recreation & others” by 0.3 per cent.
In contrast, housing cost declined by 1.1 per cent, on account of lower service & conservancy charges (S&CC) as rebates for S&CC were given in December 2010 but not in November 2010.
Excluding accommodation costs, the consumer price index was 0.5 per cent higher in December 2010 compared with November 2010.
On a seasonally adjusted basis, the consumer price index in December 2010 rose by 0.9 per cent. Excluding accommodation costs, the consumer price index was 0.7 per cent higher in December 2010.
Year-on-Year Changes
Compared with December 2009, the consumer price index increased by 4.6 percent in December 2010. This was attributed mainly to higher costs of transport, housing and food.
The 12.8 per cent increase in transport cost stemmed from higher prices of cars and petrol.
Housing cost rose by 5.1 per cent due to higher accommodation costs and electricity tariffs. Food prices increased by 2.1 per cent as a result of dearer prepared meals, vegetables, fresh seafood, dairy products & eggs, rice & other cereals, as well as meat & poultry. Excluding accommodation costs, the consumer price index was 4.3 per cent higher in December 2010 compared with a year ago.
Consumer Price Index, 2010 Compared with 2009, the consumer price index moved up by 2.8 per cent in 2010. This was higher than the 0.6 per cent rise registered in 2009. Higher costs of transport, housing and food were responsible for the increase in the CPI in 2010.
The cost of transport increased by 10.3 per cent reflecting higher prices of cars and petrol. Housing cost climbed by 2.0 per cent following higher electricity tariffs and accommodation costs. With dearer prepared meals, vegetables, fresh seafood, rice & other cereals, chilled meat, as well as milk products, food prices rose by 1.4 per cent. Excluding accommodation costs, the consumer price index for 2010 was 3.3 per cent higher compared with 2009.
Concept and Definition
The consumer price index (CPI) is commonly used as a measure of consumer price inflation. It measures price changes in a fixed basket of consumption goods and services commonly purchased by the households over time. The selection of goods and services in the CPI basket as well as their weights are kept constant at the base period to ensure that any changes in the CPI reflect only price changes.
The weighting pattern for the 2009-based CPI was derived from the expenditure values collected from the Household Expenditure Survey (HES) conducted from October 2007 to September 2008. These expenditure values were updated to 2009, taking into account price changes between 2007/08 and 2009.
The CPI is compiled on a monthly basis. For longer periods, the CPI is derived by averaging the monthly indices. For example, the yearly CPI is derived by taking a simple average of the 12 months’ indices for the year. Scope and Coverage
The CPI covers only consumption expenditure incurred by resident households. It excludes non-consumption expenditures such as loan repayments, income and property taxes, purchase of houses, shares and other financial assets etc. Resident households are defined as households headed by a Singapore citizen or permanent resident.
The 2009-based CPI basket covered a total of 6,500 brands.
Measurement of Changes in the Consumer Price Index
To calculate month-on-month change, the difference between the CPI for the specific month and that for the preceding month expressed in percentage term is used. This measures the change in average prices between the two months and serves as a useful short-term indicator of price movement.
To measure the year-on-year change, the CPI for the specific month is compared with that for the same month of preceding year. Likewise, the annual inflation rate for a specific year is computed by comparing the average for the 12 monthly indices with that for the preceding year.
Consumer Price Index for “All Items Less Accommodation”
Accommodation comprises “rental and owner-occupied accommodation”, as well as “minor repairs & maintenance”. Within accommodation, a significant share was attributed to “owner-occupied accommodation” cost which was computed based on the imputed rental concept and hence, has no impact on the cash expenditure of households. In addition, under minor repairs & maintenance, the rebates for service & conservancy charges (S&CC) which are given to households living in HDB flats in different periods of the year also result in some volatility in the monthly CPI. Hence, the series on ‘All Items less accommodation’ is compiled as an additional indicator for interested users.
Seasonally adjusted Consumer Price Index
The data series on CPI and its major components are seasonally adjusted using the X-12 procedure. Seasonal adjustment is the process of estimating and removing seasonal effects from a time series. Users interested in the underlying price trends could refer to the seasonally adjusted data series.
Topics: 2011, Asia, canteens, catering trade, cereals, consumer price index, CPI, CTI, dairy products, eating places, economic activity, economic development, economic growth, economic recovery, Economy, eggs, fast food, financial services, food, fresh seafood, Governance, government, holiday travel, housing, housing costs, inflation, insurance services, monitor, motor vehicles, news, November, others, Pacific, productivity, recreation, restaurants, retail sales, rice, RSI, sales, seafood, seasonal adjustment, Singapore, taxes, transport, vegetables
Print This Article in Plain Text
|
|
Latest Headlines
- Osama Bin Laden Dead?
- Florida To Share $1 Billion For Gulf Coast Restoration Efforts
- Texas Prays For Rain During Extreme Drought Conditions
- Governor Christie Takes Action To Reduce Diesel Emissions, Improve Air Quality
- Governor McDonnell Outlines Draft Transportation Improvement Program
- Alaska Energy Bill Passes Legislature
- Illinois State Building Receives ENERGY STAR Award
- Homeland Security Begins Using National Terrorism Advisory System
- U.S. Outlines New Health Insurance Options For Graduating College Students
- Electrolux Expands In North Carolina, To Create 200 Jobs In Charlotte
- Virginia Storm Victims To Receive Tax Extension
- U.S. Expands Broadband Investment For Rural Areas To Accelerate Job Creation
- U.S. To Invest $130 Million For Advanced Energy Research
- Michigan Passes “I’m Sorry” Bill
- Kentucky Sells Two State Aircraft To Save Taxpayer Dollars
