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DEPARTMENT OF STATISTICS, SINGAPORE

PRESS RELEASE

 

SINGAPORE CONSUMER PRICE INDEX

(November 1997 - October 1998 = 100)

DECEMBER 2000

 

The consumer price index in December 2000 rose by 0.2 per cent over November 2000. The marginal increase was contributed mainly by dearer food and miscellaneous items, as well as higher costs of transport and communication.

Compared to the same month a year ago, the consumer price index in December 2000 was 2.1 per cent higher.

2000

The consumer price index rose by 1.3 per cent in 2000. All group indices increased except clothing. The rise came mainly from higher costs of housing and transport and communication, as well as dearer miscellaneous items.

Food prices went up by 0.6 per cent during the year as a result of dearer fresh pork, seafood and cooked food. Housing cost advanced by 2.0 per cent on account of higher electricity, water and gas tariffs, as well as water-borne fee. Dearer petrol and higher bus, MRT and taxi fares raised the costs of transport and communication by 2.1 per cent. Prices of miscellaneous items and health care cost went up by 1.5 per cent each. The increases reflected mainly dearer packaged tours and cigarettes, as well as higher private medical fees and dental treatment charges. The education index increased by 1.3 per cent whilst clothing prices fell by 0.8 per cent in 2000.

CONSUMER PRICE INDEX

(November 1997 - October 1998 = 100)

Group

Weights

(%)

Index

% Change

Nov 00

Dec 00

Dec 00/

Dec 99

Dec 00/

Nov 00

2000 /

1999

All Items

100

101.9

102.1

2.1

0.2

1.3

 

 

 

 

 

 

 

Food

28

101.0

101.3

0.3

0.3

0.6

Clothing

4

98.9

98.1

1.7

-0.8

-0.8

Housing

23

102.2

102.2

4.1

0.1

2.0

Transport & Communication

18

100.9

101.1

1.0

0.2

2.1

Education & Stationery

7

103.6

103.5

2.1

-0.1

1.3

Health

3

103.6

104.0

3.0

0.4

1.5

Miscellaneous

17

103.7

104.2

3.2

0.4

1.5

 

 

 

 

 

 

 

Note : A technical note on the consumer price index is given in Annex I.

 

Department of Statistics

January 2001

 

ANNEX 1

TECHNICAL NOTE

Concept and Definition

The consumer price index (CPI) is one of the most useful indicators of inflation. It measures the change in the prices of a fixed basket of goods and services commonly purchased by the majority of households. The types and specifications of goods and services in the CPI basket as well as their quantitative proportions are kept constant to ensure that any changes in the index reflect solely price changes.

This CPI series is computed based on the results of the Household Expenditure Survey (HES) conducted from November 1997 to October 1998. For each item, the average price during November 1997 to October 1998 is taken to be 100 index points from which indices of subsequent periods are compared to measure price change. The CPI is compiled on a monthly basis. For longer periods, the index is derived by averaging the monthly indices. Similarly, the whole-year index is calculated by taking the simple average of the 12 months’ indices for the year.

Measurement of Changes in the Consumer Price Index

To indicate monthly change, the difference between the index of the month and that of the preceding month expressed in percentage term is used. This measures the change in average prices between the two months and serves as a useful short-term indicator of price movement. For measuring annual changes at one point of time, the index of the month is compared with that of the same month in the preceding year. Likewise, the annual inflation rate for any year is computed by comparing the average for the 12 monthly indices with that of the preceding year.

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