THE lower-income households in Singapore were not as badly hit by inflation as those in the middle and higher-income groups in the second half of last year, according to latest data on the consumer price index released by the Department of Statistics (DOS) on Monday.

The inflation rate for general households from July-December 2007 last year was 3.4 per cent, and for the whole year, it was 2.1 per cent, compared with 1 per cent a year go.

For the second half year, the consumer price index (CPI) rose 2.8 per cent for the lowest 20 per cent income households and 3.3 per cent for the middle 60 per cent income group.

This was also the trend for the whole year, with the CPIs up 2 per cent for both the lowest and middle income groups, and 2.3 per cent for the higher income group.

The higher inflation rate for the top 20 per cent income group was due mainly to increased holiday travel cost, car and petrol prices, which have relatively larger weights compared to other income groups.

The department said the CPI increases for all income groups in 2007 were due mainly to dearer food, holiday travel, accommodation, university tuition fees, taxi fares and petrol.

It also reflected the one-off increases in the goods and services tax (GST) rate in July 2007, which DOS expects to wear off in the second half of this year.

These price increases were moderated by lower electricity, tariffs, domestic refuse removal fees and government levy on foreign maids. There wee also more service and conservancy charge rebates during the year.