Headline inflation tops estimates for fourth month in a row

The previous month, Singapore’s stock prices surged faster than expected to an eight-year high, increasing predictions that city-central state’s bank may strengthen regulation in April and causing the ministry to adjust its inflationary predictions.

The government cites the uncertainty of forecasts

Resulting in significant rises in personal transportation, fuel, and food costs, the price index surged to its top-level after February 2013 in December, according to a statement issued from the Monetary Authority of Singapore and the Ministry of Trade and Industry.

Overall inflation increased by 4% over the year, topping expectations for the fourth month in a row and exceeding the consensus prediction of 3.7 percent.

Analysts say that Singapore’s central bank would participate to restrain rising prices at its April meeting held, with the majority forecasting a tightening of the city-monetary state’s strategy.

However, amid the likelihood of more cost increases, the government has declared its intention to increase taxes to offset the two-year pandemic costs.

The headline consumer price index increased by 2.3 percent for the year, although core inflation increased by 0.9 percent, as predicted by the MAS.

In its earlier projection, the central bank predicted that headline inflation would grow from 1.5 percent to 2.5 percent in 2022, with core inflation averaging between 1 and 2 percent.

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