Price of Food, Petrol, Electricity and Gas in S’pore To Increase In 2018 & 2019

Last Updated on 2018-10-29 , 2:50 pm

Singaporeans have a saying: everything increase price except my wages.

If you’ve subscribed to this particular belief as well, know that it’s coming true.

Because according to the Monetary Association of Singapore (MAS), that’s exactly what’s going to happen for the rest of 2018 and 2019.

At least the part about “everything increase” lah.

MAS Warns S’poreans About Price Increases Next Year

Globalisation is a beautiful thing. Without it, you and I are probably going back to tap rubber from rubber trees after a one-hour lunch break right about now.

On the other hand, it’s a pretty ugly thing as well.

Because no matter what happens in a country halfway across the world, Singapore will be affected.

Kind of like when you’re serving NS in the SAF: one-for-all, all-for-one. So if you have a joker who always screws around with the officers, the whole platoon’s going to do push-ups until their arms drop.

On 26 Oct, MAS announced that prices of food, gas, electricity and petrol are likely to increase next year.

They said that the inflation rate will be pushed to 2% for the rest of 2018 and the first half of 2019.

And it’s due to several different factors:

Weather Conditions Affecting Food Supply

As you know, Singapore doesn’t have a lot of space for farming, which means we’ll have to import our food to feed the people.

Australia, the second largest exporter of dairy products in Singapore, is experiencing a drought. And should it worsen even further, the prices of dairy products in Singapore will increase as well.

Price for rice has also increased due to an increase in consumption, and should El Nino weather conditions develop, prices for food imports will start increasing as well.

These, MAS said, should gradually turn into food inflation over time.

Uncertainty Over US Sanctions

At the same time, it doesn’t help that US Sanctions on Iranian crude oil export is muddying the landscape as well.

MAS expects the uncertainty to cause oil to be sold at an average of US$74 instead of the previously estimated price of US$66.

And given how we use crude oil for everything from producing electricity, fuel and gas, you can expect the higher cost to be passed over to consumers (i.e. Singaporeans like you and me).

Internally, S’pore Seeing Wage Growth

MAS also said that a faster wage growth will contribute to higher labour costs for a company.

And given that it’ll mean a pass on of the cost to the final retail price, it could result in an increase in the inflation rate.

They are also expecting to see the prices of essential services increasing significantly next year.

The foreign domestic worker levy will see a price hike. Bus and train fares are also expected to increase.

Which is not surprising, given how the new fare calculations include factors like wages, inflation, energy and productivity.

So Singaporeans, brace yourself and start saving up some money, eh?