Is it time to talk about inflation in Singapore?

AT first, pandemic panic seemed to be what was driving up prices, whether it was for medical supplies, essential raw materials, or food. Other factors soon came into play. Border closures and lockdowns that shut factories disrupted the global supply chain, causing shortages around the world. But 2021 has arguably been slightly less depressing for most countries that have somewhat learnt to live with the pandemic. Most countries have embarked on a vaccine rollout, albeit at varying speeds, and this has helped to facilitate the road to recovery for their economies, following last year's huge setbacks.

Even so, prices haven't fallen accordingly, setting the ball rolling for the great inflation debate: are higher prices here to stay or just temporary effects of market dislocations?

The FAO Food Price Index, used by the United Nation's Food and Agriculture Organization to track monthly changes in international prices of a basket of food commodities, averaged 127.1 points in May. This is 5.8 points more than in April and 36.1 points higher than the year-ago period, making this the largest month-on-month gain in over a decade.