Singapore Inflation Provides Good News To Citizens
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Singapore announced some good financial news. The country’s inflation reached a two-year low, and the consumer-price index climbed just 2.7%. Gambling expert Matty Treuberg expects this to be good news for online casino players from Singapore, with offshore betting operators offering Singaporeans a legal way of betting despite regulations prohibiting local online betting.
Other businesses in the leisure and retail sectors could benefit as this news could signal an increase in spending and profits.
This news came as a surprise to forecasters. However, some risks to inflation remain.
Singapore’s Recent Inflation News
Economist projections of a 3.1% rise in inflation were wide of the mark as the figure of 2.7% was announced. This shows a dramatic decrease from February’s 3.4%. According to the MTI (Ministry of Trade and Industry) and the MAS (Monetary Authority of Singapore), the slowdown was attributed to declines in the cost of private transport and low core inflation.
Core inflation dropped to 3.1% from 3.6% in February, 0.4% lower than analyst predictions.
March saw the cost of cars in the country drop, along with the COEs (certificates of entitlements) required to register new vehicles in Singapore.
Food inflation and holiday expense inflation slowed, and airfares in the country dropped.
The price of footwear and clothing production declined, helping ease retail inflation, while tobacco and alcohol increased at a moderate rate. Energy costs in the country also rose at a more moderate pace.
Benefits of Low-Inflation Rates
Singapore’s low inflation rates could have significant benefits for consumers and businesses that lead to a stronger long-term economy. Some of the benefits of low inflation include:
Increases Spending
Low inflation helps keep the price of items stable, allowing consumers to plan spending and businesses to forecast costs and revenues. A stable market and low inflation benefit everyone and give the consumer greater purchasing power. Being able to buy more for your money helps stimulate the national economy and strengthens the retail and service industries.
Retail and leisure industries will see a rise in consumer interest as the cost of living decreases. The betting industry tends to do well during times of low inflation, and Singapore bettors can explore a variety of high-quality offshore casinos that offer a wide selection of markets to bet on.
Encourages Saving
Low inflation can help to encourage consumers to save without the risk of the value of their savings decreasing over time. Consumers can be demotivated from saving for the future if prices are constantly rising.
Reduces Income Inequality
High inflation rates can have a significantly bigger impact on low-income houses with the price of energy, food, and other essentials becoming less affordable.
The result of this is that lower-income homes will begin to tighten their belts and stop spending on non-essential items such as holidays or leisure activities. Conversely, low inflation can ensure these households can afford bills and essentials and are more likely to have funds left over to save or spend on non-essential items.
Gives Country’s a Competitive Advantage
To remain competitive in the global economy, countries must keep production and export costs as low as possible, and low inflation can help with this.
Being able to offer quality products or services at lower prices to foreign markets can help individual businesses grow and improve the country’s economy.
Stimulates Borrowing
Low inflation can often be used by central banks as targets for monetary policy. This can help to keep interest rates at moderate levels, encouraging borrowing and lending.
As well as helping with borrowing and finance markets, this can also encourage investment. The knock-on effect can provide long-term economic health.
Provides Stable Foundations for the Housing Market
Lower inflation rates that lead to lower interest rates will inevitably lead to a stronger housing market. The mortgage industry will enjoy growth, stimulating all the businesses that benefit from housing, including building, finance, estate agents, lawyers, and many more.
Improves Credit Access
While lower interest rates can help to increase borrowing, they can also improve credit access with less risk involved with borrowing money or using credit cards.
All financial institutions that provide credit facilities must carry out suitability checks and risk assessments on potential borrowers; lower interest rates make loans and lending facilities more affordable. Reduced living costs also ensure customers have more free cash to pay back loans and mortgages.
