With cost of living on the rise, is Singapore getting too expensive to live in?
Housing cost is definitely one of the biggest costs in Singapore, compared to other countries.
At the same time, we are fortunate to enjoy an effective public healthcare system as well as good public schools.
Diving deeper into the key metrics from MTI, let’s explore the cost of living issue in Singapore.
This article was written by a Financial Horse Contributor.
1. Singapore economy
For the second quarter of 2024, the Singapore economy grew by 2.9% on a year-on-year basis.
The sectors that contributed the most to GDP growth during the quarter were the finance & insurance, wholesale trade and information & communications sectors.
2. Employment
How much do Singaporeans earn?
The median gross monthly income (including employer CPF contributions) for full-time employed residents in Singapore is estimated to be about SGD 5,070.
While wages are on the rise, they also correspond to the high expenses associated with living in Singapore.
Unemployment rates declined for residents and citizens, notwithstanding a marginal increase in the number of retrenchments.
According to EDB’s latest Business Expectations Survey for the Manufacturing Sector, hiring expectations in the sector were neutral.
Meanwhile, hiring expectations for services firms remained positive.
On the other hand, firms in the transportation & storage and real estate sectors registered a neutral hiring outlook – similar to that of 2Q.
3. Inflation
The Consumer Price Index (CPI) rose by 2.8% on a year-on-year basis in the 2nd quarter of 2024.
Most CPI categories saw price increases on a year-onyear basis in the second quarter of 2024, thus contributing positively to CPI.
Food prices rose by 2.8% on account of the higher costs of food serving services such as hawker food and restaurant meals, as well as non-cooked food items such as bread & cereals.
Housing & utilities costs increased by 3.8% as accommodation and electricity costs picked up.
Prices of household durables & services went up by 1.2% due to a rise in the prices of domestic & household services and household durables.
Healthcare costs climbed by 4.5% on the back of an increase in the costs of outpatient and hospital services.
Transport costs rose by 1.4% due to higher petrol prices and bus & train fares, as well as more expensive point-to-point transport services, which collectively outweighed lower airfares and car prices.
Communication costs increased by 0.7% on account of a rise in the prices of telecommunication services.
Recreation & culture prices rose by 4.7% because of the higher costs of holiday travel, as well as recreational & cultural services.
Education costs picked up by 3.3% due to higher fees at commercial institutions.
Prices of miscellaneous goods & services went up by 1.5% as the costs of personal care items and personal effects items rose.
By contrast, clothing & footwear prices fell by 1.0%, mainly due to cheaper footwear and ready-made garments.
4. Housing market
The real estate sector contracted by 1.3% year-on-year, reversing the 0.4% growth in the preceding quarter.
The weakness of the sector was due to contractions in the private residential property segment.
Prices of private residential properties are tempering down according to URA statistics. 
These are some of the median resale prices for flats for 2Q 2024. 
Are you feeling the pinch of rising costs or are they slowing tapering down from the highs?