Core Inflation Singapore: 4.8% and Climbing

Singapore's Core Inflation Hits 4.8%

Singapore's core inflation rate, which excludes the volatile prices of food and energy, has risen to 4.8% in August 2022, the highest level since October 2008. This is a significant increase from the 4.4% recorded in July.

The Monetary Authority of Singapore (MAS) attributed the rise in core inflation to a number of factors, including:

• Rising global commodity prices: The war in Ukraine has led to higher prices for energy and other commodities, which has been passed on to consumers in Singapore.
• Increased domestic demand: The Singapore economy has been growing strongly in recent months, which has led to increased demand for goods and services.
• Supply chain disruptions: The COVID-19 pandemic has caused disruptions to global supply chains, which has also contributed to higher prices.

The Impact of Core Inflation on Singaporeans

Rising core inflation is having a significant impact on Singaporeans. The cost of living is rising, and many people are struggling to make ends meet.

According to a recent survey by the National University of Singapore, nearly half of Singaporeans are worried about inflation. The survey also found that over a quarter of Singaporeans have cut back on their spending in response to rising prices.

What Can Be Done to Address Core Inflation?

The MAS has taken a number of steps to address core inflation, including:

• Raising interest rates: The MAS has raised interest rates twice this year in an effort to cool demand and reduce inflation.
• Tightening monetary policy: The MAS has also tightened monetary policy by reducing the amount of liquidity in the banking system.
• Fiscal policy: The Singapore government has announced a number of fiscal policy measures to help cushion the impact of inflation on Singaporeans.

Tips for Managing Core Inflation

There are a number of things that Singaporeans can do to manage the impact of core inflation. These include:

• Saving money: Set aside money each month to help cover the rising cost of living.
• Budgeting: Track your spending and make adjustments to your budget as needed.
• Shopping around: Compare prices before you buy to get the best deals.
• Taking advantage of discounts: Use coupons, discounts, and other promotions to save money.
• Negotiating: Ask for discounts on your bills or interest rates on your loans.

Conclusion

Core inflation is a significant challenge for Singapore. The MAS is taking steps to address the issue, but it is likely that inflation will remain high in the coming months. Singaporeans need to be prepared for the rising cost of living and take steps to manage their finances accordingly.

Tables

Table 1: Core Inflation Rate in Singapore

Table 2: Factors Contributing to Core Inflation in Singapore

Table 3: Impact of Core Inflation on Singaporeans

Table 4: Tips for Managing Core Inflation