Singapore Inflation: Prices are soaring! Two potential ways to combat inflation

singapore inflation
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Singapore Inflation: Prices are soaring! Two potential ways to combat inflation

Below is a special write-up on Inflation in Singapore from moomoo Singapore. Don’t have a moomoo account yet? Sign up using AllSGPromo-exclusive referral link to earn redeem up to 1 FREE Amazon Stock (worth ~$150 SGD) + SGD 40 Stock/Fund Coupon + AllSGPromo-exclusive $50 Cash Coupon!

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Rising Inflation in Singapore

Since this year, Singapore’s core inflation rate has continued to rise, reaching 4.8% in July, a 13-year high, due to factors such as the Russia-Ukraine conflict and the Federal Reserve’s interest rate hike.

(Source: Joint announcement issued by MAS and Ministry of Trade and Industry, August 23)

From the domestic perspective in Singapore, the labor market remains tight and wages are growing strongly.  In the case of strong consumer spending, Singapore companies are likely to pass on the upward price pressure experience on fuel, utility spending, other imported inputs, labor costs, etc. to consumers by raising the prices of their products and services.       

From the consumer side, it is also clear that all aspects of life, such as food, clothing, housing, and transportation are deeply affected by rising prices.                                              

10 years ago VS 10 years later, consumer staples prices have increased by up to 4 times!                                        

Food Products   

      Price (S$)

Year 2012

Year 2019

Year 2022

Kopi O (sugar-free, milk-free coffee)




Standard cup of pearl milk tea




10 eggs




Frozen chicken 1kg




Frozen lean pork 1kg




Kale 1kg




Tomato 1kg




Thai fragrant rice 5kg pack




Chicken Rice




Mixed vegetable rice with 2 dishes and 1 meat




Food price data source: Singapore Food Authority

Retail petrol price exceed S$4 per liter for the first time as travel costs continue to rise              

In addition to daily food, Singapore oil prices have also soared. In June this year, the price of 98-octane gasoline sold at Shell petrol stations reached $4.04 per liter, the first time the price of oil broke the $4 mark.                             

Source: Fuel Kaki, the Singapore Consumer Association’s retail fuel price comparison website, 2022.06.03                   

Local taxi drivers and private hire drivers are the most affected, spending over S$120 per week on fuel, up from S$60-70 earlier last year. (1)                                                                                      

To help drivers cope with the rising fuel costs, local taxi operators ComfortDelGro, Strides Taxi, Premier Taxis, Trans-Cab, Prime Taxi have all said that the “fare increase measures”, which were scheduled to end at the end of this month, have been further extended to the end of this year due to the skyrocketing fuel prices.

singapore inflation

Data source: Monetary Authority of Singapore and Ministry of Trade and Industry Joint Announcement, as of July 25

This means that by the end of this year, taxi fares and waiting charges will be raised by one cent. The current fare for a regular taxi is S$0.25 for every 400 meters for the first 10 kilometers, every 350 meters thereafter, and every 45 seconds of waiting time, which is 1 cent higher than the previous fare of $0.24.(2)                                                             

In addition, the price of the  Singapore-Malaysia cross-border taxi service has also been increased since July 11, with the fare from the local Wansan Street taxi station to Johor Bahru Larking station rising from the original $12 per person or $48 per trip to $15 per person or $60 per trip.(3)                                      


2.Source: 8word,

3.Source: zaobao,                                                                                      

How are consumers who are ultimately paying for the price hike coping with the continuous inflation?                                                                

Seventy percent of the public prefer to save money to counter inflation, and some have even summarized their money-saving tips:

  1. Cut down on buying food outside and save money by buying discounted ingredients at the mall and cooking on their own.
  2. Commute using bus/ train, or buy a bicycle instead of driving or taking a taxi
  3. Replace the old with the new, and reduce expenses through replaceable old things or the purchase of second-hand items
  4. Switch to a fan after an hour of air-conditioning; wait for food to cool before putting it in the refrigerator; turn off the lights at all times to save electricity cost                                                                                                     

There are many ways to save money, but from the perspective of cash purchasing power, hard-earned money is always at a discount against the backdrop of rising inflation.

For example, 10 years ago, you could buy 4 servings of chicken rice. with SGD 10. 10 years later, you can only buy 1 serving.

In order to reduce the rate of cash loss, it is not enough to cut back on expenditure but also needs to be combined with potential income, to help everyone better counter inflation.                                                                       

For ordinary people, there are two main ways to open source.

The core is to achieve salary increases through job hopping, promotion, etc.

In addition, you may also consider cash management funds as an option to increase the value of your assets.                              

With moomoo cash plus, you can fight inflation with the following features.                                                                                

  1. No negatively monthly returns to date (1)
  2. Higher yield:moomoo Cash Plus indicative 7-day annualized yield of approximately 2.5%(2)
  3. Higher liquidity: no lock-up period, enjoy quick subscription and redemption
  4. Earn daily potential return: you can enjoy the potential income every day

1.T&Cs apply. The data is accurate as of 24th August 2022 and is derived from the past performance of the money market fund on moomoo cash plus and should not be viewed as an indicator of future results.

2.T&Cs apply. The indicative 7-day annualized yield is derived from the past performance of the USD money market fund and should not be viewed as an indicator of future results.                                            


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