Consumer prices up 6.1% in 2022, with top earners seeing biggest rise among income groups in H2

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SINGAPORE - Consumer prices rose more in 2022 than the previous year due to an increase in daily expenses for items such as food and electricity.

The 2022 consumer price index (CPI) rose by 6.1 per cent, significantly higher than the 2.3 per cent increase in 2021, according to data released by the Department of Statistics (SingStat) on Wednesday.

Overall, the main contributors to inflation rates for all household income groups were cars, food, accommodation, holidays, electricity, petrol and point-to-point transport services.

However, telecommunication services were the largest negative contributor to inflation rates in the second half of the year.

Excluding rent of owner-occupied accommodation, the CPI went up by 5.9 per cent year on year for the lowest 20 per cent income group, 7.1 per cent for the middle-income group and 8.1 per cent for the top earners.

Households in the highest 20 per cent income bracket saw the biggest increase in consumer prices of 7.5 per cent year on year in the second half of 2022, compared with the other income groups.

This is higher than the 5.9 per cent increase for the lowest 20 per cent and 6.8 per cent for the 60 per cent in the middle-income group.

This is because cars, petrol and holidays – which have become more expensive – had a larger impact on the spending of top earners than on the other income groups.

Such items accounted for a bigger share of the highest income group’s expenditure basket, noted SingStat.

Across all households, the CPI for all items rose 7 per cent year on year from July to December, higher than the 5.2 per cent increase in the first half of 2022.

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