{"id":849,"date":"2023-07-14T16:50:55","date_gmt":"2023-07-14T08:50:55","guid":{"rendered":"https:\/\/www.99.co\/singapore\/glossary\/?p=849"},"modified":"2023-07-18T10:43:05","modified_gmt":"2023-07-18T02:43:05","slug":"decoding-the-consumer-price-index-cpi-in-real-estate","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/","title":{"rendered":"Consumer Price Index (CPI)"},"content":{"rendered":"\n

Definition of CPI<\/h2>\n\n\n\n

The Consumer Price Index (CPI) is a statistical tool that gauges the average shift in prices of a selection of consumer goods and services, inclusive of housing expenses. It is a crucial barometer of inflation that stakeholders in Singapore’s real estate market should be well-versed in.<\/p>\n\n\n\n

Understanding CPI<\/h2>\n\n\n\n

The CPI is derived by tracking price fluctuations for each item in a predetermined basket of goods and services, and then averaging them. These items are weighted based on their significance. Variations in the CPI are employed to evaluate price changes linked to the cost of living.<\/p>\n\n\n\n

The CPI plays several roles in Singapore’s economy. They include:<\/p>\n\n\n\n

Serving as a macroeconomic indicator of inflation, a mechanism used by the government and the Monetary Authority of Singapore<\/a> for inflation targeting, and a deflator of the economy’s production value over time.<\/p>\n\n\n\n

Adjusting eligibility levels for certain types of government assistances and to automatically prove cost-of-living wage adjustments to numerous workers in Singapore.<\/p>\n\n\n\n

Importance of CPI in real estate<\/h2>\n\n\n\n

The CPI includes a housing component, which tracks changes in rental and owner-occupied housing prices. Shifts in the housing segment of the CPI can offer insights into trends in Singapore’s property market, proving beneficial for property investors and homebuyers. The CPI impacts nearly all Singaporeans due to its extensive applications. Comprehending how the CPI is formulated and what it measures can aid in understanding the health of Singapore’s economy.<\/p>\n\n\n\n

Here’s a quick rundown of how CPI is formulated:<\/strong><\/p>\n\n\n\n

The Consumer Price Index (CPI) in Singapore measures the average price changes of a fixed basket of goods and service commonly purchased by households. It’s rebased every year, with the latest base year being 2019, to reflect current consumption patterns.<\/p>\n\n\n\n

The CPI basket includes about 6,800 brands\/varieties from 4,200 outlets. The weights assigned to each item in the basket are derived from the Household Expenditure Survey<\/a> and updated to reflect price changes. Prices are collected through various methods, with the frequency depending on the price volatility of the item. The CPI is released on the 23rd of every month and can be accessed through various platforms including the Singstat website<\/a>.<\/p>\n\n\n\n

And here’s a quick rundown of how CPI’s measurements aid understanding of Singapore’s economy:<\/strong><\/p>\n\n\n\n

Inflation measurement<\/strong>: The CPI is primarily used to measure inflation, which is the rate at which the general level of prices of goods and services is rising. A moderate level of inflation is a sign of healthy economy, including that the economy is growing. However, high inflation can erode purchasing power and may signal an overheating economy, while deflation (negative inflation) can be a sign of economic stagnation.<\/p>\n\n\n\n

Policy decisions<\/strong>: The government and the central bank use the CPI to formulate economic and monetary policies. For instance, if the CPI indicates high inflation, the central bank might raise interest rates to cool the economy. Conversely, if the CPI shows low inflation or deflation, the central bank might lower interest rates to stimulate economic activity.<\/p>\n\n\n\n

Cost of living adjustments<\/strong>: The CPI can be used to adjust salaries, pensions, and social security benefits to keep pace with the cost of living. This ensures that people’s income keeps up with inflation and maintains their purchasing power.<\/p>\n\n\n\n

Economic analysis<\/strong>: The CPI can help analyse the relative cost of living over time or compare the cost of living between different regions. It can also provide insights into consumer behaviour and changes in consumption patterns.<\/p>\n\n\n\n

Real value calculation<\/strong>: The CPI is used to calculate the real value of money, wages, and contracts. By adjusting for inflation, economists can compare the value of money in different time periods.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Conclusion<\/h3>\n\n\n\n

The CPI is an invaluable instrument for discerning trends in Singapore’s property market. By monitoring changes in the housing component of the CPI, investors and homebuyers can gain insights into market conditions and make informed decisions.<\/p>\n\n\n\n

The CPI serves multiple roles in Singapore’s economy. It’s used as a macroeconomic indicator of inflation, as a tool by the government and the Monetary Authority of Singapore for inflation targeting, and as a deflator of the economy’s production value over time. It’s also used to adjust people’s eligibility levels for certain types of government assistance and to automatically provide cost-of-living wage adjustments to numerous workers in Singapore.<\/p>\n","protected":false},"excerpt":{"rendered":"

Definition of CPI The Consumer Price Index (CPI) is a statistical tool that gauges the average shift in prices of a selection of consumer goods and services, inclusive of housing expenses. It is a crucial barometer of inflation that stakeholders in Singapore’s real estate market should be well-versed in. Understanding CPI The CPI is derived…<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[95],"tags":[96],"class_list":{"2":"type-post","8":"entry"},"acf":[],"yoast_head":"\nConsumer Price Index (CPI) - 99.co<\/title>\n<meta name=\"description\" content=\"Learn more about what the Consumer Price Index (CPI) is, its importance to you and the real estate market, and how it factors in the economy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consumer Price Index (CPI)\" \/>\n<meta property=\"og:description\" content=\"Learn more about what the Consumer Price Index (CPI) is, its importance to you and the real estate market, and how it factors in the economy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/\" \/>\n<meta property=\"og:site_name\" content=\"Property Glossary\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/99dotco\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-14T08:50:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-18T02:43:05+00:00\" \/>\n<meta name=\"author\" content=\"Azhann\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Azhann\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/\"},\"author\":{\"name\":\"Azhann\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/person\/11d17ecc350fdd47219c92f17bddb0af\"},\"headline\":\"Consumer Price Index (CPI)\",\"datePublished\":\"2023-07-14T08:50:55+00:00\",\"dateModified\":\"2023-07-18T02:43:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/\"},\"wordCount\":724,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#organization\"},\"keywords\":[\"cpi\"],\"articleSection\":[\"General Terms\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/\",\"url\":\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/\",\"name\":\"Consumer Price Index (CPI) - 99.co\",\"isPartOf\":{\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#website\"},\"datePublished\":\"2023-07-14T08:50:55+00:00\",\"dateModified\":\"2023-07-18T02:43:05+00:00\",\"description\":\"Learn more about what the Consumer Price Index (CPI) is, its importance to you and the real estate market, and how it factors in the economy.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Property Glossary\",\"item\":\"https:\/\/www.99.co\/singapore\/glossary\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"General Terms\",\"item\":\"https:\/\/www.99.co\/singapore\/glossary\/general-terms\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Consumer Price Index (CPI)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#website\",\"url\":\"https:\/\/www.99.co\/singapore\/glossary\/\",\"name\":\"Real Estate Terms | A-Z Property Glossary\",\"description\":\"Singapore Real Estate Glossary\",\"publisher\":{\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.99.co\/singapore\/glossary\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#organization\",\"name\":\"99.co\",\"url\":\"https:\/\/www.99.co\/singapore\/glossary\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.99.co\/singapore\/glossary\/wp-content\/uploads\/2023\/05\/nnco_logo.webp\",\"contentUrl\":\"https:\/\/www.99.co\/singapore\/glossary\/wp-content\/uploads\/2023\/05\/nnco_logo.webp\",\"width\":192,\"height\":72,\"caption\":\"99.co\"},\"image\":{\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/99dotco\",\"https:\/\/www.instagram.com\/99.co\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/person\/11d17ecc350fdd47219c92f17bddb0af\",\"name\":\"Azhann\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/132b70b288b02bedf3fad5a61b86016dee9c5b8b969f24adfd961dfd8ee82fcd?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/132b70b288b02bedf3fad5a61b86016dee9c5b8b969f24adfd961dfd8ee82fcd?s=96&d=mm&r=g\",\"caption\":\"Azhann\"},\"url\":\"https:\/\/www.99.co\/singapore\/glossary\/author\/azhann99-co\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consumer Price Index (CPI) - 99.co","description":"Learn more about what the Consumer Price Index (CPI) is, its importance to you and the real estate market, and how it factors in the economy.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/","og_locale":"en_US","og_type":"article","og_title":"Consumer Price Index (CPI)","og_description":"Learn more about what the Consumer Price Index (CPI) is, its importance to you and the real estate market, and how it factors in the economy.","og_url":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/","og_site_name":"Property Glossary","article_publisher":"https:\/\/www.facebook.com\/99dotco","article_published_time":"2023-07-14T08:50:55+00:00","article_modified_time":"2023-07-18T02:43:05+00:00","author":"Azhann","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Azhann","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#article","isPartOf":{"@id":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/"},"author":{"name":"Azhann","@id":"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/person\/11d17ecc350fdd47219c92f17bddb0af"},"headline":"Consumer Price Index (CPI)","datePublished":"2023-07-14T08:50:55+00:00","dateModified":"2023-07-18T02:43:05+00:00","mainEntityOfPage":{"@id":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/"},"wordCount":724,"commentCount":0,"publisher":{"@id":"https:\/\/www.99.co\/singapore\/glossary\/#organization"},"keywords":["cpi"],"articleSection":["General Terms"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/","url":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/","name":"Consumer Price Index (CPI) - 99.co","isPartOf":{"@id":"https:\/\/www.99.co\/singapore\/glossary\/#website"},"datePublished":"2023-07-14T08:50:55+00:00","dateModified":"2023-07-18T02:43:05+00:00","description":"Learn more about what the Consumer Price Index (CPI) is, its importance to you and the real estate market, and how it factors in the economy.","breadcrumb":{"@id":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.99.co\/singapore\/glossary\/decoding-the-consumer-price-index-cpi-in-real-estate\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Property Glossary","item":"https:\/\/www.99.co\/singapore\/glossary\/"},{"@type":"ListItem","position":2,"name":"General Terms","item":"https:\/\/www.99.co\/singapore\/glossary\/general-terms\/"},{"@type":"ListItem","position":3,"name":"Consumer Price Index (CPI)"}]},{"@type":"WebSite","@id":"https:\/\/www.99.co\/singapore\/glossary\/#website","url":"https:\/\/www.99.co\/singapore\/glossary\/","name":"Real Estate Terms | A-Z Property Glossary","description":"Singapore Real Estate Glossary","publisher":{"@id":"https:\/\/www.99.co\/singapore\/glossary\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.99.co\/singapore\/glossary\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.99.co\/singapore\/glossary\/#organization","name":"99.co","url":"https:\/\/www.99.co\/singapore\/glossary\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/logo\/image\/","url":"https:\/\/www.99.co\/singapore\/glossary\/wp-content\/uploads\/2023\/05\/nnco_logo.webp","contentUrl":"https:\/\/www.99.co\/singapore\/glossary\/wp-content\/uploads\/2023\/05\/nnco_logo.webp","width":192,"height":72,"caption":"99.co"},"image":{"@id":"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/99dotco","https:\/\/www.instagram.com\/99.co"]},{"@type":"Person","@id":"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/person\/11d17ecc350fdd47219c92f17bddb0af","name":"Azhann","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.99.co\/singapore\/glossary\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/132b70b288b02bedf3fad5a61b86016dee9c5b8b969f24adfd961dfd8ee82fcd?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/132b70b288b02bedf3fad5a61b86016dee9c5b8b969f24adfd961dfd8ee82fcd?s=96&d=mm&r=g","caption":"Azhann"},"url":"https:\/\/www.99.co\/singapore\/glossary\/author\/azhann99-co\/"}]}},"_links":{"self":[{"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/posts\/849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/comments?post=849"}],"version-history":[{"count":12,"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/posts\/849\/revisions"}],"predecessor-version":[{"id":879,"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/posts\/849\/revisions\/879"}],"wp:attachment":[{"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/media?parent=849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/categories?post=849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.99.co\/singapore\/glossary\/wp-json\/wp\/v2\/tags?post=849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}