Impact of GST Increase on Core Inflation and Mitigating Measures for Price Stability

The GST increase is expected to contribute slightly less than one percentage point to core inflation, with overall core inflation projected to average 2.5% to 3.5% in 2024, down from 4.2% in 2023.
Other key drivers of inflation this year include higher electricity and gas tariffs due to rising oil prices and increased water prices from higher production costs.
To manage price stability, MAS will maintain a steady appreciation of the exchange rate policy band to dampen imported inflation, and the government will monitor trends and provide support to households and businesses.

The GST increase is expected to contribute slightly less than one percentage point to core inflation, with overall core inflation projected to average 2.5% to 3.5% in 2024, down from 4.2% in 2023.
Other key drivers of inflation this year include higher electricity and gas tariffs due to rising oil prices and increased water prices from higher production costs.
To manage price stability, MAS will maintain a steady appreciation of the exchange rate policy band to dampen imported inflation, and the government will monitor trends and provide support to households and businesses.

The GST increase is expected to contribute slightly less than one percentage point to core inflation, with overall core inflation projected to average 2.5% to 3.5% in 2024, down from 4.2% in 2023.
Other key drivers of inflation this year include higher electricity and gas tariffs due to rising oil prices and increased water prices from higher production costs.
To manage price stability, MAS will maintain a steady appreciation of the exchange rate policy band to dampen imported inflation, and the government will monitor trends and provide support to households and businesses.

The GST increase is expected to contribute slightly less than one percentage point to core inflation, with overall core inflation projected to average 2.5% to 3.5% in 2024, down from 4.2% in 2023.
Other key drivers of inflation this year include higher electricity and gas tariffs due to rising oil prices and increased water prices from higher production costs.
To manage price stability, MAS will maintain a steady appreciation of the exchange rate policy band to dampen imported inflation, and the government will monitor trends and provide support to households and businesses.

Summary