Uncle8888's retirement planning on future inflation rate @ 2.5% looking reasonable based on past 20 yrs back-testing data points!
Taking highest inflation rate that will hit him badly is the cost of health care at $1.58 in 2020 to $1 in 2000.
The inflation rate for 20 yrs is about 2.2%
This article was updated on 30 May 2021.
We’ve all heard our parents and/or grandparents lament over how expensive things have gotten in Singapore over the years. The main culprit for this is inflation – the higher the inflation, the more expensive things become compared to the previous year.
No matter how frugal we may try to be, we will see ourselves gradually spending more as inflation will increase the prices of even the most basic daily necessities.
The Singapore Department of Statistics (SingStats) keeps a detailed record for price changes in goods and services that are important aspects of life in Singapore on a yearly basis. These include:
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Hi Uncle8888,
ReplyDeleteInflation over the past 20 years is exceptionally low, almost an anomaly in the 500-year modern history of humankind. 😛
Education: from $1 to $1.81 i.e. 3% inflation over 20 yrs.
Teachers salaries are pretty good! (They were already above median salary in the mid-2000s ;) )
Healthcare: from $1 to $1.58 i.e. 2.3% inflation (That's REALLY LOW for healthcare!)
Nurses salaries are only starting to catch up in recent years. (Now further acceleration due to Covid publicity)
Food: from $1 to $1.50 i.e. 2% inflation (Low from historical perspective, thanks to globalisation)
Unfortunately this sector is a case of 90% riches going to the top 10%. High gini coefficient here lol.
From 1962 till 2020, Singapore's average inflation is 2.5%. The early-70s to early-80s was tough. Highest inflation rate was 34% in March of 1974!
Long term chart of Singapore's inflation
For crystal ball gazing, here's a projection of S'pore's inflation to 2026.
Rising from a low base, but still very tame. 🤞
And yet, the youngster upstairs still complaining money not earning enough to buy Starbuck Frappuccino.
ReplyDeleteAiya...................