Labour market remains chief source of inflation

Singapore

THE chief source of Singapore's inflation will remain the tight labour market and how it is pushing wages up, but not all sectors will be able to hike prices. Businesses providing education, healthcare and meals are more likely to pass costs on to consumers, while retailers facing intense competition will find it harder to raise prices, according to the latest Macroeconomic Review published twice a year by Singapore's central bank.

"Underlying price pressures will be stronger than overall inflation in the year ahead," said the Monetary Authority of Singapore (MAS), whose responsibility is to ensure price stability. MAS core inflation - which excludes accommodation and private transport costs - has come in higher in recent quarters as wage cost pressures has built up.