What is Inflation?
Inflation refers to the sustained increase in general price level of goods and services over time. It erodes the purchasing power of money, meaning that as prices rise, the same amount of money can buy fewer goods and services.
Singapore’s inflation rate rose 4.7% in May 2023
(* Source from Reuters.com)
Official data showed that Singapore prices rose 4.7% year-on-year in May, slower than the month before due to a decline in food and services costs.
The May core inflation rate – a key consumer price gauge that excludes private road transport and accommodation costs – compared with the 5% seen in April.
The Monetary Authority of SIngapore (MAS) and the trade ministry said in a statement that the second half of 2023 would see core inflation moderate further.
Headline inflation was up 5.1% year-on-year in May, compared with a forecast 5.5% increase in Reuters poll.
The Central bank has said this year’s core inflation is expected to average 3.5%-4.5%, while headline inflation is forecast at 5.5%-6.5% for the period.
What it means and how it impacts on funeral prices?
In Singapore, like any other economy, the inflation rate is influenced by various factors such as economic growth, consumer demand, government policies, global commodity prices, and monetary policy. Central banks often aim to maintain a target inflation rate to promote price stability and economic growth.
The impact of inflation on funeral prices, or any other specific goods or services, can be influenced by several factors. These include the availability of funeral-related resources, technological advancements, competition, and other market dynamics. While inflation may generally lead to higher prices over time, the specific impact on funeral costs can vary.
While considering the impact of inflation over a long period, such as 20 years, it is important to note that predicting the future prices accurately can be challenging due to the numerous variables involved. However, it is reasonable to expect that funeral prices, like most other goods and services, may increase over time due to inflationary pressures.
If we work on a basis of a simple 5% inflation rate flat over 10 years, a simple $15,000 funeral cost may cost around $24,433 in 2033.
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