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With inflationary pressure, GST hike will bite but balance will be struck

Amala Balakrishner
Amala Balakrishner • 6 min read
With inflationary pressure, GST hike will bite but balance will be struck
Things are already so expensive, I am scared that they will become more expensive over time, especially when GST goes up: retiree
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Ten years ago, 65-year-old Helena Wong used to fork out around $400 monthly for groceries and necessities. Today, the retired school teacher, who lives alone, says her monthly bill has nearly doubled for the same list of items. “I am actually buying the same things — fresh fruits, vegetables, rice, fish, and occasionally, some condiments, vitamins and snacks. Nothing unusual or fancy,” she tells The Edge Singapore.

With things being “very expensive these days”, Wong is concerned about rising prices in view of the inevitable rise in the Goods and Services Tax (GST) in Singapore. “Things are already so expensive, I am scared that they will become more expensive over time, especially when GST goes up,” she adds.

Wong is not alone in feeling the pinch of higher prices. Forty-seven-year-old Siti Aisha notes that over the past two years, there have been 50% to 80% increases in the prices of most things like shampoo, detergents, fruits and vegetables. “I always go to the same stalls in the market, so I can really see that prices have gone up so much,” she sighs.

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