INFLATION IS LOWER NOW BECAUSE OF PIONEER GENERATION PACKAGE. True of BS?

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An honorable member of the Coffee Shop Has Just Posted the Following:

GOVT SAYS INFLATION IS LOWER NOW BECAUSE OF PIONEER GENERATION PACKAGE

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26 Oct 2014 - 9:46am








The government claims that because of the Pioneer Generation Package, prices have grown slower in Singapore.

In a joint media release from the Monetary Authority of Singapore (MAS) and the Minster of Trade and Industry (MIT), the government said that, “Services inflation slowed to 1.7% in September from 2.1% in the preceding month, … mainly due to the moderation in the increase in medical and dental treatment fees, from 4.6% in August to 2.4%”.
MAS and MIT claims that the slowdown in inflation was because of “enhanced medical subsidies, including the Pioneer Generation Package (PGP)”.

However, a closer look at the statistics still showed that medical treatment had increased by 3.5%.

The roll out of the Pioneer Generation Package has been met with several problems. Singaporeans could start using the PGP card, which comes with the package, from the beginning of September.

However, some Singaporeans have highlighted how the prices of the regular medical items or check-ups that they would usually go for were increased, after the PGP was launched.







There was also feedback that if someone were to use the PGP card, they would not be able to see their regular specialist but would be downgraded to a different specialist.

The Ministry of Health later admitted that “(“pioneers”) will no longer be able to choose their doctors” but claims that “the specialists they are currently seeing may be part of the teams which take over their care”.

The use of the PGP card thus means that older Singaporeans would have to forgo seeking regular treatment from someone who would be knowledgeable of their health situation.

Also, not all older Singaporeans 65 and above are eligible for the Pioneer Generation Package. Only older Singaporeans born In 1949 or before will be eligible. It is unknown why the government believes that the lower health inflation can be attributed to a change in a small segment of the population.

TRS spoke to Leong Sze Hian who said that the government should "give us the data projections to support the Government's assertion."

The government says that, “MAS Core Inflation, which excludes the costs of accommodation and private road transport, edged down to 1.9% in September from 2.1% a month ago.”

However, even though services inflation has slowed, inflation for “telecommunication services, tertiary education and air transport were higher compared to August”.
“Food inflation was (also) higher at 3.0% compared to 2.9% a month ago.”

MAS and MIT added that the lower inflation was due to the “one-off reduction in the level of healthcare services cost”, meaning that inflation will increase again after the short reprieve.
MAS and MIT expects inflation to increase, as “MAS Core Inflation is likely to rise slightly into early 2015 before easing.”

The lower inflation in September is short-lived.


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