The Big Read in short: Families tighten their belts as inflation continues to bite

Inflation, the measure of how fast the prices of goods and services rise, has made headlines in the last few months as the biggest economic challenge of 2022 not just for Singapore, but for many other countries as well. Each week, TODAY’s long-running Big Read series delves into the trends and issues that matter. This week, we look at how families are resorting to various ways to save money amid the rising cost of living. This is a shortened version of the full feature, which can be found here . Amid persistent inflation, households here have begun tightening their belts and using different ways to save money

Despite such adjustments, the families still find themselves digging deeper into their pockets to make ends meet

Economists expect prices to remain elevated for an extended period, possibly up to two years

Low-income families said their expenditures have already been pared to the bone, and they have to resort to cutting back on basics

Financial experts give practical tips to save money in times like these

SINGAPORE — When his petrol cost started to almost double to S$300 a week last month, warehouse manager Vincent Chok decided to save money by taking the bus from his four-room public housing flat in Punggol to Tai Seng MRT station where his bicycle is parked, and then cycling the last mile to his office in the vicinity.

He has been doing that since but the 42-year-old sole breadwinner for his family of five is not the only one who has had to make adjustments.

On weekdays, his wife now takes the bus to ferry their two younger children to and from preschool — a journey which takes 20 minutes, or twice the duration by car — while his eight-year-old son walks to his school nearby.

“We have to make these adjustments because I can no longer afford to drive the children to school in the morning,” said Mr Chok, who now drives his car only on weekends.

Like him, many other households have resorted to tighten their belts amid rising prices on multiple fronts — ranging from fuel, food to electricity. “ We have to make these adjustments because I can no longer afford to drive the children to school in the morning. ” The mother of three children, aged between 11 and 26, also washes clothes only when they reach a full load for the washing machine and constantly reminds her children to switch off all appliances when leaving a room, after her utility bills rose by about S$30 last month.

“Whenever I see the house is brightly lit, I always ask them: ‘Wah, so bright. Today is Hari Raya, is it?’” she quipped.

Similarly, Madam Mala Rai, 44, who has seen her household expenses gone up by about S$200 in recent months, has also made some changes in her household, such as cutting shower time for her entire family by half.

The administrator, who works in the service industry and lives in a five-room flat, said her two sons, aged 10 and 13, used to take showers lasting 10 to 15 minutes but have cut the time to between five and seven minutes after she showed them the utility bills.

Despite such adjustments, the families whom TODAY spoke to said they are digging deeper into their pockets to make ends meet as they try to ride out the inflation storm, which is unlikely to blow over soon. Singapore’s headline inflation rate rose to 4.3 per cent in February, its fastest pace in nine years. HOW LONG WILL PRICES STAY HIGH?

Based on latest official statistics released last month, Singapore’s headline inflation rate rose to 4.3 per cent in February, its fastest pace in nine years, due to the rising costs of cars, air travel and accommodation.

Headline inflation covers the prices of all categories of goods and services, which include commodities like food and energy.

Meanwhile, core inflation, which excludes transport and accommodation, eased to 2.2 per cent in February from 2.4 per cent in January. The fall in core inflation was the result of lower rates of increase for services, food, electricity and gas.

Core inflation is expected to reach 3 per cent by the middle of this year, before easing later in the year. The Monetary Authority of Singapore is expecting core inflation to come in within 2 to 3 per cent this year while headline inflation is projected to be between 2.5 and 3.5 per cent.

DBS senior economist Irvin Seah said it is very likely that […]

source The Big Read in short: Families tighten their belts as inflation continues to bite