Consumers shop more ‘consciously’ this festive season amid inflation, GST fears: businesses
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WITH high inflation and the impending goods and services tax (GST) hike, shoppers in Singapore have been more value-conscious this festive season, companies told The Business Times. Some are more sensitive to price, while others are willing to pay a higher price for longer-lasting products.
With the rising cost of living, customers want more “bang for their buck” as they have to buy more items for a variety of occasions, said Kara Bensley-Austin, founder of fashion and lifestyle boutique The Wyld Shop. “Because there are no restrictions this year, the parties and gatherings have ramped up again so there’s more reason to purchase new outfits and gifts for friends and family.”
In November, headline inflation was 6.7 per cent and core inflation was 5.1 per cent, with the latter forecast to stay elevated in the coming months before slowing in the second half of 2023. On Jan 1, the GST will rise one percentage point to 8 per cent, adding further inflationary pressure.
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