I spotted this news recently about how inflation is affecting the lives of people all over the world. This story is about the effect on Singaporeans, the wealthiest state in SE Asia but then there are citizens who are in the lower income group too.
This brings me to the point of the importance of creating a family budget as what I read the article Why You Need To Have A Family Budget
Any way here is the story :-
SINGAPORE (AFP) - From taking fewer taxi rides to eating out less and shortening shower time, residents of affluent Singapore are trying to cope with inflation, which has soared to 26-year highs.
Rising costs of housing, food, and transport have eaten into family budgets of Singaporeans as well as the large number of expatriates working in the city-state, consumers and analysts said.
Except for the ultra-rich, the impact of the sharp price increases has cut across social classes in one of Asia's wealthiest nations, they said.
Government figures show Singapore's annual inflation was at 6.7 percent in March, the highest since 1982, boosted by higher costs of food, transport, communications and housing.
The figure is more than double the inflation rate in Malaysia and higher than that of the Philippines, Hong Kong and Australia. Unlike bigger countries in the region, Singapore imports most of its needs.
"When the inflation rate is high, it affects everybody," said Serena, a businesswoman who lives near the prime Orchard Road shopping and would only give her first name.
Serena said even affluent families like hers have had to adjust to the rising costs by eyeing grocery prices more closely, using the car less and eating in fancy restaurants only on special occasions.
"You have to differentiate between needs and wants, what is necessary and what is not necessary. If you can get something cheaper, you don't have to go for branded (luxury) items," she told AFP.
While soaring inflation in developing countries, amid a global food crisis, has left many struggling to feed their families, Singaporeans are dealing with the impact of price hikes in their own ways.
For Janice Tan, 35, who works at a travel agency, the soaring prices have forced members of her family to shower only once a day to cut their water bill. Water used to rinse vegetables is recycled to flush the toilet.
To reduce the electric bill, Tan said she told her maid to iron only office clothes -- and just the parts that are visible.
"It's a big deal for Singapore in that we have never had inflation higher than three percent," said Euston Quah, head of the economics division at Singapore's Nanyang Technological University.
"It hits the poor badly because the poor spend maybe 40, 50 percent of their income on food," he said.
Quah sees inflation eventually easing to around 4.5 to 5.5 percent this year, while the government has forecast 2008 economic growth forecast of 4.0 to 6.0 percent.
Amin Sorr, 65, who works with a shipping firm, said life has become harder, especially for those earning less.
With a monthly salary of 3,000 Singapore dollars (2,200 US), Sorr said he can cope, but friends pulling in 2,000 dollars or less are struggling.
"I know a lot of friends who have problems with their water bills... and even personal credit lines."
Local charities say rising food prices are also driving more Singaporeans, especially poor senior citizens, to join queues for free meals.
Salamah Salim, 40, who runs a food stall on the fringes of the business district, said: "Our expenses on food and rice have more than doubled over the past year. Rice and oil have risen tremendously."
Even expatriate professionals, particularly those with less generous housing allowances and other benefits, have been hit.
As apartment rents surged, some moved their families from condominiums that come with swimming pools, gyms and barbecue pits to cheaper government-built flats without such resort-style amenities.
"They raised our rent by 150 percent after our contract expired late last year," said a Filipino computer engineer, who transferred from a gated condominium to a government-built high-rise in the suburbs.
"I know several friends who have also made similar moves or are planning to move out once their leases expire," he said, requesting anonymity.
Dee Pritchard, who works at the Australian International School, said that except for being more careful with the grocery shopping and giving the children fewer treats, nothing much has changed in her lifestyle.
"I'm lucky I'm not in the lower income (group) which would be suffering a lot more than I do really. But at the end of the week, the cash is less. There is less savings."
http://ca.news.yahoo.com/s/afp/080427/business/singapore_economy_inflation_consumer
