Inflation has been a very hot topic in 2022 and 2023. I personally feel the pinch regarding food where I bought a bowl of “ban mian” previously for $2.50. Subsequently, a couple of months later, it increased to $2.80. Thereafter, $3 and now it is selling at $3.50. Of course, it is still very affordable. However, the sheer increase in price is over 40% which is pretty ridiculous. Since then, I have been very conscious of inflation around me. I am sure, many people are wondering whether the salary in Singapore is growing in line with inflation. Me too. I am curious, let’s find out today then!
Median Annual Salary (Over the past 10 years)
We have gathered the data from, MOM Labour Force 2022 report, where we summarise the Median Annual Salary over the past 10 years. Salary has increased steadily year-by-year. However, is our wages growing in line with inflation?
Inflation Rate (Over the past 10 years)
The Inflation Rate in Singapore over the past 10 years has been in a relatively healthy range, except for 2022. It hit the 2nd highest all time high of 6.12%, just shy of the 40-year all time high of 6.63% in 2008.
Hence, do you think our wages are growing in line with our wages?
Try guessing!
Inflation Vs Wages in Singapore (Over the past 10 years)
Surprisingly, the data seems to be relatively correlated. It achieved a score of just shy of 68%. To my surprise, the median annual wages is actually increasing at a pace faster than the inflation rate!
Our Stand
Despite many ongoing concerns about inflation and its impact on purchasing power, data have shown that the median annual salaries have increased steadily year over year. There could be instances where specific goods or services have experienced significant price increases. However, the overall trend suggests that wage growth has been relatively strong.
All in all, the data indicates a positive correlation between wages and inflation in Singapore. This suggests that, on average, individuals have been able to maintain their purchasing power despite the upward trend in prices. However, it is crucial to continue monitoring these trends and ensuring that wage growth remains sufficient to support a reasonable standard of living for all individuals in the face of potential future inflationary pressures.
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