We all have living expenses and over the years, we might have a general observation of how expensive certain things have become.
For a more accurate understanding of inflation in Singapore, we can refer to the Singapore Consumer Price Index (CPI). The CPI tracks the average price changes in goods and services that are commonly purchased by resident households year by year.
Inflation Eased to 2.4% In 2024
According to SingStat, overall inflation in Singapore averaged 2.4% in 2024, down from 4.8% in 2023.
The top contributors to inflation in 2024 were accommodation, food, hospital and outpatient services, holiday and expenses and bus and train fares. On the other hand, the lowered prices of other transport services and clothing and footwear, were the reason why inflation eased in 2024.
In a monetary policy statement dated January 2024, it was forecasted that there would be an easing of inflation to 2.5% for year 2024. This was amid declines in COE premiums since November 2023 and the larger COE supply in 2024 compared to the previous year.
SingStat also showed the consumption patterns of households in Singapore, with housing and utilities, transport and food being the top expenditure groups in 2024. Housing and utilities made up 29.4% of overall household expenses in Singapore. Food and transport formed 20.4% and 13.1% of a household’s expenses.
Source: SingStat
Housing And Utilities (Increased 3.3% In 2024)
Housing and utilities expenses saw a 3.3% increase in 2024. Under housing and utilities category, accommodation is a sub-component which comprises of housing rental costs and maintenance and repairs.
Specifically, accommodation increased 3.0% in 2024, while utility and other fuels increased by 5.4% in 2024.
Housing price was not considered in calculating the CPI as it has a high investment component and is treated as a capital good.
Food (Increased 2.8% In 2024)
In 2024, prices for food increased to 2.8%. We can have a closer look at the food category that is broken down to individual food items and the price changes as shown in the following table.
All food items increased in price including bread and cereals at 3.6%, oils and fats at 2.7% and vegetables at 2.4%. Fish and seafood was the only food items which dropped 3.7%.
| Bread & cereals | 3.6% |
| Meat | 0.0% |
| Fish and seafood | -3.7% |
| Milk, cheese and eggs | 1.6% |
| Oils and fats | 2.7% |
| Fruits | 1.8% |
| Vegetables | 2.4% |
| Sugar, preserves and confectionery | 0.5% |
| Non-alcoholic beverages | 2.8% |
| Other food | 4.4% |
In addition, price for all types of food services including restaurant food and hawker food saw an increase.
| Restaurant food | 3.8% |
| Fast food | 4.2% |
| Hawker food | 3.4% |
| Catered food | 3.2% |
Transport (Increased 0.9% In 2024)
In general, transport expenses increased by 0.9% in 2024 from the year before. The decline in prices for other transport services was offset by the rise in prices of public buses and trains.
| Private transport | 0.0% |
| Public transport | 6.8% |
| Other transport | -2.8% |
Recreation, Sports And Culture (Increased 3.8% In 2024)
Expenses for recreation, sports and culture increased by 3.8%, perhaps due to a strong recovery from the Covid pandemic, with more people planning for holiday trips and event attendances in 2024.
Recreation and cultural services, which include sports services, cinema tickets and entrance charges to places of interest recorded a 5.0% jump.
| Recreational & cultural goods | 0.9% |
| Recreational & cultural services | 5.0% |
| Newspapers, books & stationery | 0.7% |
| Holiday expenses | 3.9% |
Healthcare (Increased 3.9% In 2024)
Healthcare costs include several components such as medicines and health products, hospital services and health insurance. In 2024, healthcare costs in Singapore edged up 3.9%.
Health insurance rates increased 5.1% amid an increasingly aging population and utilisation of more advanced health technologies. This is not specific to Singapore, as other countries such as Malaysia are also experiencing rising health insurance premiums.
| Medicines and health products | 1.5% |
| Outpatient services | 4.0% |
| Hospital services | 4.8% |
| Health insurance | 5.1% |
Education (Increased 3.2% In 2024)
Overall, education costs had risen 3.2% in 2024. A closer look at the statistics showed that tuition and other fees were the main drivers of the inflation, with a price jump of 3.2%. Studying under the guidance of teachers is more expensive as more costs may be involved such as manpower and facilities.
| Tuition & other fees | 3.2% |
| Textbooks and study guides | 1.7% |
Household Durables And Services (Increased 0.7% In 2024)
The household durables and services category saw an increase of 0.7% in 2024. Household durables include furniture, furnishing, electrical appliances and utensils.
These items may not require replacement as often and are not the main expenditures of a household.
Miscellaneous Goods And Services (Increased 1.3% In 2024)
Miscellaneous goods and services, which comprise of personal care, alcoholic drinks, cigarettes and other personal effects, had increased 1.3% in 2024.
This is largely attributed to an uptick in prices for alcoholic beverages and tobacco.
| Personal care | 1.3% |
| Alcoholic drinks and tobacco | 2.6% |
| Personal effects | 0.5% |
| Social services | 0.7% |
| Other services | 1.4% |
Information And Communication (Increased 0.8% In 2024)
The costs of information and communication services increased 0.8% in 2024. Telecommunication equipment prices declined by 3.2%, but this was offset by an increase in postage and courier services of 12.4%.
| Postage & courier services | 12.4% |
| Telecommunication equipment | -3.2% |
| Telecommunication services | 0.7% |
Clothing And Footwear (Decreased 0.6% In 2024)
The clothing and footwear category was the only one which saw a decrease in price at 0.6%. Clothing and footwear are also the smallest expenses of households in Singapore.
| Clothing | -1.0% |
| Other articles and services | 2.1% |
| Footwear | -2.1% |
Read Also: The Old Chang Kee Index: Can Curry Puffs & Chicken Wings Be Used To Track Inflation In Singapore?
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