Singapore : electricity tariffs to increase April 2008 on rising oil prices

This article belongs to the Singapore inflation watch story arc.

channelnewsasia.com, spservices.com.sg (pdf) :

Electricity tariffs will go up by an average of 1.26 cents (S$0.0126) per kilowatt starting 1 April. SP Services said this is due to higher fuel oil prices. For the quarter from April to June, the electricity tariff is pegged to a higher forward fuel oil price of US$74.40 per barrel, which is 12.25% higher than the US$66.28 per barrel for the current quarter. The electricity tariff is reviewed quarterly. It is adjusted accordingly, in line with the fluctuation in electricity cost.

- The price for typical household users will go up from 22.62 cents per KWh to 23.88 cents per KWh, an increase of 5.57% from the current quarter (2008Q1). On a year-on-year basis, the Singapore electricity rate is up by 26.48% from 18.88 cents per KWh in April 2007. I would say this is in line with the general trend of inflation in Singapore for the past year or so, with actual prices that people are paying increasing by 20-30% or more.

And if you were to look back further, the increase is even larger. From the PDF, we see that the electricity rate 3 years ago, for April 2005, was 16.06 cents per KWh. So we're up 48.69% in 3 years. But if you think that's bad, well, you ain't seen nothing yet.

Updated :

1. Singapore electricity rates to increase 4.98% from Jul 2008

(2008-03-20 13:00:21 SGT) [Energy] Permalink

Fed cuts interest rate by another 3/4 of a point

The Federal Reserve slashed a key interest rate by three-quarters of a point Tuesday [18 Mar 2008], capping its most aggressive two months of action in a quarter-century in a battle to halt a spreading credit crisis. The strong Fed action seemed to convince investors, at least for now, that the central bank will do whatever it can to keep the country out of a steep recession. The Dow Jones industrial average finished the day up 420.41 points at 12,392.66.

The latest Fed move brought the federal funds rate - the interest that banks charge each other - down to 2.25%, the lowest since late 2004. The reduction triggered announcements from commercial banks that they were cutting their prime lending rate to 5.25% from 6%. This rate is the benchmark for millions of business and consumer loans. Many analysts believe the Fed may cut rates only once more, perhaps by a more ordinary 1/4-point at the next meeting, and then sit back and see if economic stimulus checks that will begin arriving at 130 million households in May will do the trick along with the rate cuts to jump-start the economy.

- Like the contrarian community has been saying all along, the Fed will rather fight the recession than fight inflation. The Fed does not really fight inflation and never really has. By increasing the money supply, they are the ones who are responsible for creating the inflation in the first place.

(2008-03-20 12:40:22 SGT) [Biz] Permalink

Newly discovered fungus threatens world wheat crop

slashdot.org -> un.org :

A dangerous new fungus with the ability to destroy entire wheat fields has been detected in Iran, the United Nations Food and Agriculture Organization (FAO) reported today [5 Mar 2008]. The wheat stem rust, whose spores are carried by wind across continents, was previously found in East Africa and Yemen and has moved to Iran. Up to 80% of all Asian and African wheat varieties are susceptible to the fungus.

The fungus is spreading rapidly and could seriously lower wheat production in countries at direct risk, said Shivaji Pandey, Director of FAO's Plant Production and Protection Division. He urged the control of the rust's spread to lower the risk to countries already impacted by high food prices. Called Ug99, the disease first surfaced in Uganda and subsequently spread to Kenya and Ethiopia, with both countries experiencing serious crop yield losses due to a serious rust epidemic last year. Iran has said that it will bolster its research capacity to tackle the new fungus and develop wheat varieties that are rust-resistant.

- Like high food prices weren't enough, now disease comes to the fore. With global inventory levels as low as they are, any disruption in the food supply chain could mean shortages and skyrocketing prices.

(2008-03-20 08:11:52 SGT) [Env] Permalink

Singapore inflation : fishball prices increase 20%

channelnewsasia.com :

Retailers said the prices of fishballs have risen by 20% since last July due to rising cost of raw ingredients. The retail price of Foochow fishballs, for example, has gone up to from S$7 to S$9 per kilogramme. Prices of five-spice ngoh hiang (meat roll) have also risen by 25%, from S$2.60 to S$3.00 per kilogramme, over the same period.

Retailers said the price hikes have been caused by the dip in supplies of frozen fish from countries such as Thailand and Indonesia. Fisheries in those countries have been affected by bad weather. Even though retailers in Singapore have started looking for cheaper sources of ingredients, they said the prices of fishballs are expected to climb further in the later half of the year.

- That's in line with the general trend of actual prices in Singapore going up 20%, 30% or more.

(2008-03-20 00:33:39 SGT) [Biz] Permalink

« Previous day (Mar 19, 2008) | Main | Next day (Mar 21, 2008) »

Most popular blog postings on lowem.log :

1. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
2. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
3. Live spot gold price quotes chart on COMEX
4. Fuel prices seen stoking Malaysia inflation in 2008
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Singapore SIBOR rate fell to 1.25% in Apr 2008, lowest since Aug 2004
7. Malaysia inflation rate jumps to 7.7% in Jun 2008, a 26-year record high
8. Singapore : electricity tariffs to increase April 2008 on rising oil prices

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Singapore : Bread price inflation continues
4. 2010 Honda Civic Hybrid preliminary specifications released
5. Peakoiler buys 2008 Honda Civic Hybrid FD3
6. How to insert currency exchange rates into Google Spreadsheets
7. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
8. Singapore : Inflation erodes away bank savings