Publication Type

Book Chapter

Version

acceptedVersion

Publication Date

5-2023

Abstract

Inflation dynamics in Singapore have primarily been shaped by foreign factors, including global inflationary pressures and external macroeconomic shocks. More recently, the normalisation phase of the Covid-19 pandemic crisis has led to domestic price pressures from pent-up demand and supply-chain disruptions. Meanwhile, the war in Ukraine has resulted in a hike in the global prices of food, energy, and industrial commodities. Using inflation forecasts from the MAS Survey of Professional Forecasters as our measure of inflation expectations, we show that short-term inflation expectations have shifted up recently. Moreover, greater disagreement amongst survey respondents in the more recent surveys suggests individual short-term inflation expectations may also be slipping. The Monetary Authority of Singapore (MAS) has promptly responded to the elevated price pressures by repeatedly tightening monetary policy. Such forceful policy responses reveal the central bank’s resolve to maintain price stability, which will help to ensure that inflation expectations in Singapore remain anchored.

Keywords

Inflation expectations, Singapore monetary policy, Pandemic crisis

Discipline

Asian Studies | Econometrics | Macroeconomics

Research Areas

Econometrics; Macroeconomics

Publication

Inflation and deflation in East Asia

Editor

F. Rövekamp, M. Bälz, H.G. Hilpert, & Wook Sohn

First Page

75

Last Page

87

ISBN

9783031279485

Identifier

10.1007/978-3-031-27949-2_5

Publisher

Springer

City or Country

Cham

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1007/978-3-031-27949-2_5

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