Singapore Inflation On The Up

The Singapore rate of inflation has been recorded beyond analysts expectations, according to official figures released today, which indicate that more proactive anti-inflation measures may be necessary in order keep it from becoming too problematic.

The rate of inflation on an adjusted annual basis to August was reflected in a consumer price index increase of 2.9%, according to figures released by the Department of Statistics today. Most analysts had forecast a growth of around 2.8%, slightly below the actual figures released today.

The Singapore economy has experienced a strong revival in recent times, quickly establishing itself as one of the main players in the sub-continental Asian economy. However many analysts are now turning their concerns to the problem of inflation, calling on the government to take more proactive steps to make sure it doesn’t get out of hand.

Transport and telecommunications prices were amongst the major movers upwards in August as a direct result of the increased cost of fuel, whilst the index also saw strength from foodstuffs over the period.

Additionally, clothing and personal grooming products saw a strong upsurge in cost over the period, adding weight to the inflation figure estimated through the consumer price index measure.

On top of that the Singapore economy is currently in the midst of a strong housing boom, leading to spiraling prices in the wake of rapidly growing demand. As a result, many analysts are anticipating inflation to continue to become a problem in the free credit environment that is currently establishing in the economy.

The impact of prolonged strong economic growth on the Singapore economy is now beginning to be felt through increased demand side inflation, with living standards and disposable incomes growing in equal measure.

Singapore was voted one of the best economies in the region in which to live in a survey conducted earlier this summer.

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