The global inflation wave that has crashed onto Singapore’s shores is hitting households harder as they pile up more expenses while incomes aren’t keeping up.
That’s the conclusion of DBS Bank analysts, who dissected data from 1.2 million retail customers -- anonymous and aggregated -- to understand the impact and implications of soaring price growth in the city-state. Consumers are spending more relative to income, with an expenses-to-income ratio rising to 64% in May from 59% a year earlier.
More troubling, low-income groups are seeing expenses grow 5.6 times faster than their income -- providing a window on why policymakers have prioritized relief targeted toward the most vulnerable households. Those subsidies aren’t accounted for in the income component of the ratios DBS computed.