Ms Hazel Poa: To ask the Minister for Trade and Industry (a) whether there is any difference in the rate of increase of the Consumer Price Index (CPI) as compared to the rate of increase in cost of living; and (b) if so, why.
Written Answer by Minister for Trade and Industry Gan Kim Yong
1. The Consumer Price Index for All Items, or CPI-All Items, captures the average price changes of a basket of goods and services commonly purchased by resident households over time. It is a widely-used and internationally-accepted measure of consumer price inflation. The Government also tracks the MAS Core Inflation measure, which excludes accommodation and private transport costs that do not affect the day-to-day expenses of most resident households.
2. The “cost of living” on the other hand, is multi-faceted and shaped by both price and non-price factors, such as changes in lifestyle and household preferences. For instance, while younger families may be concerned about the costs of education, families with elderly members will be more concerned about the cost of healthcare. Given their different needs and changing aspirations, the cost of living faced by Singaporeans cannot be fully captured by a single measure.