Inflation Likely to Hit 5% in 1Q08

CPI may surge to 4 - 5% in 1Q08, and at an ave rate of 3% next yr. The previous high was 4% in Jul 1991.

The spike is due to very low CPI of 0.5% in 1Q07, and low oil prices. It will then settle down to a more 'normal' condition in 2H08.

* AsiaOne-CPI , RadarGaga-CPI *

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We r feeling the pinch & pressure now bcos prices from noodle, bread to electricity, transport, ie daily necessities, are all driven up due to shortages. Ytd, a sch bus driver lamented higher price in petrol and everything, and she wondered what the govt has been doing.

R pple more unhappy when the economy is flying and inflation is gg up, compared to a moderate economy where inflation is low? Don't increase in income and employment rate help to offset all these?

Btw, next yr pty tax is gg to increase too as the valuation has gone up by approx 20% ... ... CNA-AV.