It has always been a curious part of me to know at what stage of my life I am at right now as compared to the general population at large. So let me not waste time and bring you to the numbers!
Consumer Price Index (CPI) – changes of Price level on goods and services
Just a simple inference from the graph – This is the underlying reason why Singapore is one of the most expensive country to live in. You pay exponentially more for a simple good/service as compared to a nearby ASEAN country.
Inflation Rate – Rate of Price Growth of goods and services
To make it less confusing, the difference between inflation rate and consumer price index is that inflation rate talks about the growth of price on goods/services while consumer price index is talks about the price paid for goods/services
This chart compares the inflation rate and consumer price index. As you can see, the cause of high prices of goods and services that you paid is due to the inflation surge during 1970s till 1980s and again before the Lehman brother’s crisis.
So the question now is how can you benefit from knowing this? – Everything!
This provides reasons on why you’re paying $xx more for a product overtime and also the health of our economy. But i guess ultimately the most important thing is HOW MUCH MUST I EARN? to find it less challenging to live in Singapore.
That being the median wage, you should probably be earning 10-20% more in order to keep up with inflation and consumer price index. If you don’t……. we are all in the same boat 😦