Dear readers, one of today’s headline news is the 2.3% fall in Singapore residents’ real median income due to inflation. The following are the thoughts that came across my mind when I read the news.
I am not surprised (at the 2.3% fall in Singapore residents’ real median incomes) given how prices of everyday items have only one direction to go: which is north. Indeed, since last year or so, I have felt the impact of everyday prices going up and up. Being a person who does not spend much on wants, I also felt the effect of inflation as inflation does not discriminate against needs and wants. Even everyday items like food (which I spent the majority of my savings on and believe this to be the same for many others) also have had price increases.
Even my favourite economical rice has had a $1 increase from $2.90 to $3.90 and there was no heads up given to long-time customers like me for the increase. The stall assistant nonchalantly informed me the economical rice costs $3.90 and I paid for it willingly since I understand that everyone from consumer to business owners to stall operators are not spared the high costs of living.
Therein lies the irony of economical rice. I like to eat economical rice not only because it provides me (and I can get to choose) servings of meat and vegetables for a more balanced diet but because it is one of the cheaper meal options on town. The irony comes in when economical prices becomes more expensive such that it defeats the purpose of consumers going for this meal option.
Okay, back to the topic of the 2.3% fall in Singapore’s residents’ real median income. To be honest, the headline is noteworthy but in terms of impact, it has to be translated into this, at least for me: imagine a person taking home $5,000 a month. After adjusting for 2.3% fall in real median income, the person’s actual take home pay is $4,885, that means a adjustment loss of $115 per month or $1,380 per annum (around 0.28 months pay) per annum, and that is definitely an impact.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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