, Singapore

Brace yourselves: Analyst sees full-year headline inflation to reach 5.8% 

Yearly inflation rate went up quickly since the start of 2021.


As food and oil prices continue to drive up inflation rates, RHB expects that headline inflation in the Lion City will reach 5.8% year-on-year (YoY) in 2022.


This as Singapore is reliant on food and energy imports.


“Higher food and oil prices are the chief drivers of inflation– food inflation accelerated to 6.1% YoY in July 2022, highest since November 2008, while transport costs rose 19.0% YoY in the same month, marking the peak since available data as of 2000,” said RHB, in its report.


In July, the government recorded a headline inflation of 7.0% YoY, the highest since 2008.


It also sees some moderation of consumer prices by the end of 2022, which can be found from slowing momentum in major segments such as clothing and footwear, recreation and culture, and miscellaneous goods and services.


The Russia-Ukraine tensions have yet to be resolved whilst energy prices could keep increasing by the end of 2022, said RHB.


“Domestically, demand-pull drivers will likely be shouldered by a tighter labour market which would keep wage growth and consumer demand strong,” added RHB.


For monetary policy, RHB said the Monetary Authority of Singapore will still implement a slight increase in the Singaporean dollar nominal effective exchange rate in October.


Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

SIT, DNV ink 3-year partnership on maritime decarbonization and digitalization
The parties will cooperate in three key areas.   The Singapore Institute of Technology (SIT) has joined hands with a maritime advisor, DNV, to advance net-zero ambitions in the Lion City’s maritime sector.


Where to invest your millions in real estate
Amongst locations, realtors suggest the Core Central Region.   Individuals seeking shelter in the real estate market amidst the rising inflation must consider three things before deciding where to invest their millions in.   George Tan, managing director of Savills Digital Residential Marketing, said one of these factors is location.    Tan said buyers should consider areas which are highly demanded and well located—easy access to prestigious or international schools, MRT, malls and food and beverage (F&B) establishments. All these will contribute to good rental demand.   PropNex realtor, Andy Lim, echoed this, adding that buyers should particularly invest in properties within one kilometre of the prestigious schools.