Supplementary Budget? Economists look to more policy moves to mitigate Singapore inflation

THE upward creep of core inflation might prompt Singapore to step in with both fiscal and monetary policy measures, economists said on Monday (May 23), as they warned of the risk that consumer prices could bust the upper end of official forecasts in 2022.

Household necessities such as food and electricity are driving up the cost of living, as core inflation – which excludes accommodation and private transport costs – jumped to 3.3 per cent in April, up from 2.9 per cent in March. While below the median estimate of 3.4 per cent in a private Bloomberg poll, core inflation is still at its highest level since early 2012.

Meanwhile, headline inflation stayed high at 5.4 per cent – unchanged from the month before – as the inflation in food, retail goods, and utilities was offset by a smaller increase in car prices.