SINGAPORE - Households in the lowest 20 per cent income group were hit hardest by rising prices, data released on Friday (Jan 23) by the Statistics Department showed.
Consumer prices for these households went up 1 per cent in the second half of 2014, compared with 0.6 per cent for the middle 60 per cent. Inflation was unchanged for those in the highest 20 per cent income group.
For all three income groups, more expensive food, higher school and tuition fees, as well as costlier medical treatment fees contributed to inflation.
The lower inflation rates experienced by the middle 60 per cent and highest 20 per cent income groups compared to the lowest 20 per cent income group were largely due to moderating car prices, which had a larger impact on their consumption baskets because they spend a larger percentage of their income on cars.
In contrast, the increase in food prices had a larger impact on households in the the lowest income bracket due to their larger expenditure share on food items.
