Possibility and Impact of Quickened Pace of Inflation in Singapore

Mr Desmond Choo asked the Minister for Trade and Industry (a) whether Singapore will face a quickened pace of inflation; and (b) if so, how will such a development affect the Singapore economy over the next 12 months.

MTI expects CPI-All Items inflation to average between 1% and 2% this year, following the 0.2% decline in consumer prices last year.

Consumer price increases in Singapore are likely to be relatively moderate, although global inflationary pressures are likely to remain elevated in the near term, due to higher oil prices and higher inflation in some of our major trading partners including the US.

As this year’s projected inflation rate largely reflects normalising prices amidst an uncertain global and domestic economic recovery, MTI does not expect it to have an adverse impact on the Singapore economy. The Government will continue to monitor inflation trends in the Singapore economy closely and help Singaporeans cope with cost of living pressures.