Last January (11 Jan 2022), Minister of State for Trade and Industry Low Yen Ling told Parliament that Singapore did not expect persistent, accelerating inflation ahead, and cost pressures were expected to ease gradually over the course of the year.

“While household inflation expectations have risen slightly, they remain well-anchored. In particular, household expectations of inflation have remained below historical averages. Hence, MAS (Monetary Authority of Singapore) and MTI (Ministry of Trade and Industry) do not expect persistent, accelerating inflation,” she said.

Singapore’s headline inflation rose to 3.8 per cent in November 2021, while core inflation which excludes accommodation and private road transport costs, came in at 1.6 per cent the same month.

Singapore’s core inflation was expected to increase in the first half of 2022, before easing in the latter part of the year, she added. She assured everyone that the PAP government is sparing no effort to lessen the inflation impact on Singaporeans.

However, one year later, according to the latest inflation data released on Wednesday (25 Jan 2023), Singapore’s inflation remains stubbornly high.

Core Inflation now came in at 5.1 per cent on a year-on-year basis in December, unchanged from November.

On a month-on-month basis, Core CPI increased by 0.6 per cent while CPI-All Items rose by 0.2 per cent.

For 2022 as a whole, Singapore’s Core Inflation averaged 4.1 per cent, higher than the 0.9 per cent recorded in 2021. Over the same period, CPI-All Items inflation came in at 6.1 per cent, up from 2.3 per cent in 2021.

“These are big increases and they are not likely to significantly reverse any time soon,” even noted by ST Editorial.

MAS and MTI: Core CPI projected to stay high in first half this year

After the release of the latest December inflation data, many economists remain pessimistic and say that the latest data shows that taming core inflation will remain challenging for Singapore this year, especially with the Goods & Service Tax (GST) hike factored in.

OCBC chief economist Selena Ling said core inflation will remain challenging in 2023, “maybe because of domestic price pressure points”. These include the recent GST hike implemented by the PAP government.

“For the man in the street, while they have received additional assistance through the GST Assurance Package and the recent $300 in CDC (Community Development Council) vouchers per household, elevated inflation remains the pressing issue of the day,” said Ms Ling.

UOB senior economist Alvin Liew thinks the stubborn core inflation means that inflation risks will remain on the upside.

Meanwhile, MAS and MTI now said that core inflation is projected to stay high in the first half of 2023, “MAS Core Inflation is projected to stay elevated in the first half of this year before slowing more discernibly in H2 2023 as the current tightness in the domestic labour market eases and global inflation moderates.”

Subscribe
Notify of
18 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
You May Also Like

Asian Infrastructure Investment Bank’s internal review found ‘no evidence’ of China influence

The Asian Infrastructure Investment Bank (AIIB) stated that there is “no evidence” of Beijing’s dominance over the bank, following allegations made by a former executive. The AIIB conducted an internal review and found no improper influence, affirming its adherence to multilateral governance standards. The bank acknowledged the need to address certain issues raised during the review but dismissed the allegations as unsubstantiated. The AIIB, established as a counterweight to Western financial institutions, has 106 global members but not the United States.

Video contradicts Sim Ann’s explanation of disruption at Earth Hour performance

Senior Minister of State (SMS) for Foreign Affairs and National Development, Sim Ann, faced criticism for disrespecting a performer during a live performance at the WWF Earth Hour Festival in March. The organizers of the event took responsibility and apologized for any disruption caused. Netizens criticized the SMS for her lack of social etiquette, while a different story emerged — based on video footage — from Sim’s actions at the event itself, as she actively sought people to greet and shake hands with.

MADPET: Zahid Hamidi’s Acquittal by High Court must be appealed to the Court of Appeal, and prosecution failures must be investigated

by MADPET(Malaysians Against Death Penalty and Torture) MADPET (Malaysians Against Death Penalty and…