Home > Breaking News > Singapore > Story
Oct 13, 2009
Inflation likely to rise <!--10 min-->
Rate could be between 1% and 2% due to higher oil and food prices, central bank predicts <!-- headline one : start --> <!-- headline one : end --> <!-- Author --> <!-- show image if available --> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tbody><tr></tr> <tr> </tr> <tr> </tr> <tr> </tr> <tr><td colspan="2" class="padlrt8 georgia11 darkgrey bold">By Fiona Chan </td></tr> <tr valign="bottom"> <td width="330">
</td> <td width="10">
</td> <td valign="bottom">
Inflation is expected to pick up again, causing higher oil and food prices. -- PHOTO: ST
</td></tr> </tbody></table>
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.
Latest comments <table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="Post" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">one of the chief contributor to the inflation will be food. the recent mother nature's wrath has wiped out plenty of food supply in asia.
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: gemini58 at Tue Oct 13 16:53:42 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="AlternatePost" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">Just leave the rates alone and dont meddle with it. If they are going to meddle with it, then use whatever USD that is in the reserves to buy gold/silver. Use the USD to invest in agricultural commodities. The answer does not in the exports. The US has no more money to buy our products. If we want to devalue our currency, devalue it against the Yuan.
They aren't very clever at the MAS.....the US economy is dead.
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: TheScientist at Tue Oct 13 12:01:30 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="Post" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">MAS, you tell.
But what is your solution?
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: BBBAAANNN at Tue Oct 13 10:22:47 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="AlternatePost" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">There is inflation NOW! what next year.
Inflation if measured correctly is the increase in money supply over productivity. The US expanded its monetary base and because MAS took a no appreciation policy against the USD, we have in fact increased our money supply. There is inflation.
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: TheScientist at Tue Oct 13 10:07:25 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr></tbody></table>
Oct 13, 2009
Inflation likely to rise <!--10 min-->
Rate could be between 1% and 2% due to higher oil and food prices, central bank predicts <!-- headline one : start --> <!-- headline one : end --> <!-- Author --> <!-- show image if available --> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tbody><tr></tr> <tr> </tr> <tr> </tr> <tr> </tr> <tr><td colspan="2" class="padlrt8 georgia11 darkgrey bold">By Fiona Chan </td></tr> <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>
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.
Latest comments <table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="Post" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">one of the chief contributor to the inflation will be food. the recent mother nature's wrath has wiped out plenty of food supply in asia.
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: gemini58 at Tue Oct 13 16:53:42 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="AlternatePost" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">Just leave the rates alone and dont meddle with it. If they are going to meddle with it, then use whatever USD that is in the reserves to buy gold/silver. Use the USD to invest in agricultural commodities. The answer does not in the exports. The US has no more money to buy our products. If we want to devalue our currency, devalue it against the Yuan.
They aren't very clever at the MAS.....the US economy is dead.
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: TheScientist at Tue Oct 13 12:01:30 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="Post" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">MAS, you tell.
But what is your solution?
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: BBBAAANNN at Tue Oct 13 10:22:47 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr><tr><td style="vertical-align: top;" align="left"><table style="width: 100%;" cellpadding="0" cellspacing="2"><tbody><tr><td style="vertical-align: top;" align="left"><table class="AlternatePost" style="width: 100%;" cellpadding="0" cellspacing="0"><tbody><tr><td style="vertical-align: top;" align="left">There is inflation NOW! what next year.
Inflation if measured correctly is the increase in money supply over productivity. The US expanded its monetary base and because MAS took a no appreciation policy against the USD, we have in fact increased our money supply. There is inflation.
</td></tr><tr><td style="vertical-align: top;" align="left">Posted by: TheScientist at Tue Oct 13 10:07:25 SGT 2009
</td></tr></tbody></table></td></tr></tbody></table></td></tr></tbody></table>
