This was a chat I had with a reader who is also a very concerned parent. T do we see a 3% increase in basic necessities costs? Perhaps 1-1.5% is more reasonable? AK core inflation. That would be 2 to 3% per annum. Recently, we have been experiencing deflationary pressure but even so, food prices saw inflation of 2.2% or so, year on year. Oil prices being so low now contribute to deflationary pressure but I don't this this will last more than a year or two. I hope that the Singapore dollar stays relatively strong and that we don't see inflation at 5% again just like a couple of years or so ago. T (Referring to the CPF) 3% incremental retirement sum will amount to 445k retirement sum 34 years later.... Oh wow... It will wipe out a lot of middle income ppl's Sa! Seen from the perspective of a 21 yr ......