While the prices of everyday goods are expected to rise this year, Singaporeans should not feel too much of a pinch as their bosses plan to raise their salaries in tandem.
A survey of 143 firms by human resource consultancy Towers Watson found that, on average, employers are planning to increase wages by 4.5 per cent.
The government has forecast that headline inflation will be between 3.5 and 4.5 per cent this year, while core inflation, which excludes accommodation and private road transport costs, will be from 2.5 to 3 per cent.
The survey, carried out in February and March, found that the greatest wage increases are being planned by companies in the financial service sector, with rises of 5.1 per cent on average. -By Yasmine Yahya