CPI Inflation Analysis

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The graph above shows the main contributor to the overall CPI Inflation in the year 2010, by looking at the graph, it shows that all the contributors in Singapore at are the main reasons for the CPI Inflation like for example, Cars, Food, etc. The trend above shows that all the inflation are slowly getting higher in percentage contributions from the first quarterly year up to the end of the year 2010. (Ministry of Trade, 2010). Higher car prices contributed to about half of CPI inflation in 2010. The prices of cars contributed about half of overall CPI inflation in 2010 (chart) The increase in car prices reflected a sharp increase in Certificate of Entitlement (COE) premiums for cars, which rose by close to 200 per cent in 2010 compared to…show more content…
Enhancing the Productivity and Innovation Credit Scheme as well as expanding training support. Measures to help companies manage the increase in costs include a corporate income tax rebate, SME cash grants, and a Special Employment Credit for employers of older Singaporean workers. As part of the drive to improve productivity, further foreign worker levy increases were also announced in Budget 2011 to reduce the economy’s reliance on foreign labour. By strengthening our society with the introduction of both one-off and permanent measures to expand support for lower- and middle-income Singaporeans in the areas of child care, education, healthcare, and housing. These include a ‘Grow & Share’ Package totaling $3.2 billion in one-off special transfers such as Growth Dividends, and $3.4 billion in longer-term social investments such as top-ups to the Medical Endowment Fund. Budget 2011 also enhanced progressivity in Personal Income Tax rates, and increased bursary support for students. (Singapore Budget,…show more content…
(Introduction of the Goods and Services Tax, 1994) The collection of GST were higher than the budgeted with the strong consumption growth and higher tourist receipts in 2010. (Singapore Budget, 2011) Property Related Taxes How Singapore Government did some measures to achieve stable price for 2011 budget by reflecting the 2010 GDP, the Government by slowly rising the prices for the private property and the normal HDB houses. By slowing down the prices, this will achieve stable prices for the CPI Inflation as the Property Especially during the first three quarters of FY 2010. Due to the faster than-expected completion of properties, which are subject to Property Taxes, Assets Taxes are estimated to be $3.0 billion, $0.3 billion (or 10.2%) higher than the budgeted FY 2010 estimate. (Global Property Guide, 2011). Motor Vehicle Related

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