Singapore may need more fiscal, monetary policy action to check runaway prices: Analysts

SINGAPORE may have to take further fiscal and monetary policy action to curb runaway prices, some analysts warned on Monday (Apr 25), as inflation surged to a decade high.

Rising global energy prices are set to fuel inflation - taking a toll on private transport costs from petrol pump prices, as well as driving up electricity and gas expenses - while accommodation expenses are tipped to keep rising from firm rental demand domestically.

Nicholas Mapa, senior economist at ING, said in a note the Monetary Authority of Singapore (MAS) “could resort to additional off-cycle adjustments” should core inflation threaten to bust the ceiling of the central bank’s latest forecast range.