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<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Oct 13, 2009
</TR><!-- headline one : start --><TR>Inflation likely to rise <!--10 min-->
</TR><!-- headline one : end --><TR>Rate could be between 1% and 2% due to higher oil and food prices, central bank predicts </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Fiona Chan
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Inflation is expected to pick up again, causing higher oil and food prices. -- PHOTO: ST
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<!-- START OF : div id="storytext"-->AFTER coming in at zero per cent this year, inflation is likely to pick up again next year, on the back of higher oil and food prices.
The Monetary Authority of Singapore (MAS) has flagged these two factors as the main drivers of inflation next year, predicting it will rise to 1 per cent to 2 per cent.
In its twice-yearly monetary policy statement yesterday, the central bank also said inflation is likely to be around zero per cent this year.
The MAS said the recent recovery in global oil prices pushed up consumer prices in July and August, after two straight quarters of decline.
But domestic costs remained low as rents and wages came down significantly amid the downturn, allowing inflation to average minus 0.5 per cent in the period from April to August, compared with the same period last year.
For the rest of the year and into next year, local costs are expected to stay relatively subdued, said the MAS. The labour market is still fairly weak, which means wages are unlikely to rise sharply, while ample upcoming supply of office and shop space will keep rents down.
Read the full story in Tuesday's edition of The Straits Times.
</TR><!-- headline one : start --><TR>Inflation likely to rise <!--10 min-->
</TR><!-- headline one : end --><TR>Rate could be between 1% and 2% due to higher oil and food prices, central bank predicts </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Fiona Chan
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Inflation is expected to pick up again, causing higher oil and food prices. -- PHOTO: ST
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->AFTER coming in at zero per cent this year, inflation is likely to pick up again next year, on the back of higher oil and food prices.
The Monetary Authority of Singapore (MAS) has flagged these two factors as the main drivers of inflation next year, predicting it will rise to 1 per cent to 2 per cent.
In its twice-yearly monetary policy statement yesterday, the central bank also said inflation is likely to be around zero per cent this year.
The MAS said the recent recovery in global oil prices pushed up consumer prices in July and August, after two straight quarters of decline.
But domestic costs remained low as rents and wages came down significantly amid the downturn, allowing inflation to average minus 0.5 per cent in the period from April to August, compared with the same period last year.
For the rest of the year and into next year, local costs are expected to stay relatively subdued, said the MAS. The labour market is still fairly weak, which means wages are unlikely to rise sharply, while ample upcoming supply of office and shop space will keep rents down.
Read the full story in Tuesday's edition of The Straits Times.
