Core inflation expected to come in 2.5%-3.5% in 2022

Consumer price inflation will also be raised by more than previously anticipated.

The Monetary Authority of Singapore (MAS) said it expects the Lion City's core inflation to come in 2.5% to 3.5% in 2022 versus the 2% to 3% projected in January as the pandemic and Russian-Ukraine conflict aggravate inflationary pressures.

In its April 2022 Monetary Policy statement, Singapore's central bank also sees consumer price index-all items inflation is projected at 4.5% to 5.5%, from the earlier range of 2.5–3.5%.

MAS said, in the next quarters, consumer price inflation will also be raised because of surge of global commodity prices since late February and renewed supply chain disruptions.

Following this, the latest rise in energy and agricultural commodity prices will also increase domestic inflation for electricity, gas, fuel and non-cooked food over the year.

Earlier, MAS tightened the market's monetary policy for the third time because of underlying inflationary measures.