Thought of the week Highest inflation reading since 1982
Consumer Price Index (CPI) increased to 7% for the year through December (including more volatile components such as food and fuel) and 5.5% not including these. Increases in the indexes for shelter and for used cars and trucks were the largest contributors. Used cars and resale flats
There are some parallels between factors driving CPI higher in the US and resale flat prices higher in Singapore. Resale Price Index rose 12.5% for the whole of 2021. TL;DR: Demand is high, but supply is tight. Supply conditions are unlikely to ease in the short term – shortages in chips (among others) are delaying car shipments in the 6-12 month period but it is impossible to increase the housing supply in the short term due to the way the market is set up and because construction of new flats takes time. Bank earnings, canary...
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