SPARKED off by Russia’s invasion of Ukraine, and compounded subsequently by disruptions in global supply chains and economic uncertainty, inflation has been a significant bugbear for policymakers across the world for the past year.

As a small open economy that is reliant on global supply chains, Singapore is particularly vulnerable to the effects of inflation. Official statistics show that core inflation in Singapore is the highest since November 2008, having risen to 5.5 percent year on year in both January and February.

The impact of inflation on citizens is pronounced. A recent PropertyGuru poll found that more than half of Singaporeans may delay their plans to buy a home until inflation eases. A DBS study published last year also revealed that income growth had not kept pace with inflation for four in 10 people.


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The writer is senior research fellow at the Institute of Policy Studies, National University of Singapore. He is also co-author of the book Singapore and Switzerland: Secrets to Small State Success.

Top photo from Unsplash.