Shoppers at the NTUC Hypermart in Ang Mo Kio Hub. Households experienced the highest inflation rate of 7.4 per cent , compared with 6.4 per cent and 6.1 per cent for the middle 60 per cent and top 20 per cent income groups respectively. -- ST PHOTO: CAROLINE CHIA
HOUSEHOLDS in the lowest 20 per cent income group were hardest hit by inflation last year.
They experienced the highest inflation rate of 7.4 per cent , compared with 6.4 per cent and 6.1 per cent for the middle 60 per cent and top 20 per cent income groups respectively.
For the whole of 2008, the inflation rate for general households was 6.5 per cent,higher than the 2.1 per cent for 2007, according to figures released by the Department of Statistics (DOS) on Monday.
The increases in the Consumer Price Index (CPI) for all income groups in 2008 were due mainly to higher costs of food, accommodation, electricity tariffs, petrol, holiday travel and taxi fares.
But these price increases were partially moderated by lower road tax, car prices as well as cheaper personal computers.
"The CPI for the lowest 20 per cent income group rose faster than the other two income groups in 2008 due mainly to dearer food as well as increased accommodation costs and electricity tariffs, which have relatively higher weights in the CPI for the low income group," said the DOS in a statement.
