Looking back at inflation in 2021

In a surprise off-cycle move, the Monetary Authority of Singapore (MAS) tightened monetary policy on Tuesday (Jan 25), and raised its 2022 headline inflation forecast to between 2.5 and 3.5 per cent, up from 1.5 and 2.5 per cent previously.

Inflation was already seen as a major concern going into 2022, with Singapore's headline inflation rising faster than expected to 4 per cent in December.

Here's a look at how some of the significant CPI components moved in 2021.

Housing

In 2021, both the private residential property and Housing and Development Board resale price indices recorded the fastest annual growth since 2010. For the full year, private home prices climbed 10.6 per cent while resale flat prices rose 12.5 per cent, based on flash estimates.

Responding to the rising prices, the government moved to cool the housing market last December, raising additional buyer's stamp duty, among other things.

Food

On the one hand, supply shortages and logistics bottlenecks drove up food prices. But the emergence of the Delta variant resulted in tighter Covid-19 control measures, greatly impacting food and beverage establishments here.

Electricity

Electricity prices rose sharply after several electricity retailers abruptly exited the open electricity market last October, resulting in their customers being transferred to SP Group and generally paying more.

Just before the year ended, state energy suppliers also announced that electricity and gas tariffs are set to rise in the first quarter of 2022.

COE prices

Certificate Of Entitlement prices are expected to remain high in the upcoming months due to a smaller supply quota.

Retail

With tourist demand still largely absent, retail was one of the few categories to buck the inflationary trend, with prices declining across the year.

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