Interview with Lim Xiu Ru on inflation and labour market trends

20 Jun 2023

Broadcast on inflation and financial planning and the slowing of the Year-on-year growth in personal disposable income featured SP Business Lecturer Lin Xiu Ru, who shared how this can be evaluated through the compensation of employees. She shared that the real income workers receive after taking into consideration inflation will allow them to purchase lesser goods than they were able to previously. She also observed a slowing trend in the recent labour market reports. This concern for the labour market could also affect the growth in salary of workers, and also lead to uncertainties. This therefore affects how consumers feel about disposable income. Xiu Ru is of the opinion that although personal disposable income will continue to grow, the growth will slow down. She added that due to cooling measures, rent will not increase as much, and this will affect the personal disposable income of some individuals. She opined consumers have observed an increase in the rate of returns from fixed income instruments, and added that if the economic outlook remains gloomy, this will also affect consumer trends, leading to more careful financial planning. Xiu Ru shared that higher interest rates will also raise the spending of certain consumers.

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