Inflation Rate in Singapore

It was recently reported in the news that inflation rate in Singapore hit 3.8% in November; the highest since Jan 2009.

The MAS uses the currency instead of interest rates to manage inflation, which it forecasts will average between 2.5% and 3.5% this year.

From 1962 until 2010, the average inflation rate in Singapore was 2.73%.

To illustrate how inflation rate will erode our savings:
$100,000 after 25years @ 2% Inflation Rate => $60,346
$100,000 after 25years @ 2.5% Inflation Rate => $53,103
$100,000 after 25years @ 3% Inflation Rate => $46,697
$100,000 after 25years @ 3.5% Inflation Rate => $41,038
$100,000 after 25years @ 4% Inflation Rate =>$36,040

$100,000 after 30years @ 2% Inflation Rate =>$54,548
$100,000 after 30years @ 2.5% Inflation Rate => $46,788
$100,000 after 30years @ 3% Inflation Rate => $40,101
$100,000 after 30years @ 3.5% Inflation Rate => $34,342
$100,000 after 30years @ 4% Inflation Rate => $29,386

$100,000 after 35years @ 2% Inflation Rate => $49,307
$100,000 after 35years @ 2.5% Inflation Rate => $41,225
$100,000 after 35years @ 3% Inflation Rate => $34,436
$100,000 after 35years @ 3.5% Inflation Rate => $28,738
$100,000 after 35years @ 4% Inflation Rate => $23,960

A minimum inflation rate of 2% is used as this is the same that financial planner/adviser will adopt.
I presume that those interested to kickstart financial planning will be those from 25 to 35years old. Thus, a period of 25, 30 & 35 years is used to calculate the future value,  i.e. when one's age ranges from 50 to 65years old. 

For example, if I'm 30years old now , my present $100,000 will be "worth" only $54,548 when I'm 60years old, with inflation rate being 2%. The future value will drop about 50%!

More importantly, this means that during our financial planning (which could encompass retirement funds, insurance coverage, children's education funds etc), we will need to consciously take into considerations the effect of inflation.