The oil price is now above USD 90. It is an increase of 50% compared to two years ago.
The high price will find work its way into the cost of living over the next one or two years.
Some businesses try to absorb the higher cost initally. After a while, they have to increase their prices. This is already happening for taxi fares. More businesses will follow soon.
What can consumers do?
Start looking for ways to reduce your cost of living. Do not wait for the higher prices to strike you. It will come soon. Be prepared early and be ready to adjust your spending habits.
When inflation is high, in order to reduce the cost of living, it means lower the standard of living. It's a no brainer advice, isn't it?
ReplyDeleteMr. Tan,
ReplyDeleteI cannot fully agree with you. You should not try to reduce, 'your' cost of living. If you do so, you are downgrading your lifestyle.
What we should encourage is for businesses to improve the value chain of their businesses to their clients, so that, businesses can charge a slightly premium. With higher service charges, then can employers provide better pay to their employees.
The increase of GST fueled with Higher energy prices, are going to hurt the lower and middle income earners the most. As NTUC Fairprice will no longer be absorbing the 2% increase of GST for some of its home essential items, we will have to see what will the full effect be.
You can reduce your cost of living by going to another jurisdiction with low prices., eg JB.
ReplyDeleteAs long as you are in Singapore there is no way you can do. To COPE with it, other than going away, the following might help
#1. belt tightening...to change life style and to reduce standard of living
#2. To earn more money
#3. make sure your investment earns above inflation.
What are the insurance products that will suffer in the face of inflation?
#1. Whole life traditional, Living
#2. Regular endowment,eg NTUC revosave
#3. Single premium endowment, eg NTUC Growth policy, Capital Plus
#4. FDs, Saving accounts, CDs
What products that will hedge against inflation?
!!!!!!!!!!!EQUITIES!!!!!!!!!!