“Consumer price inflation (CPI) has been higher than expected in many economies. The step-up in inflation momentum, particularly in the advanced economies, has prompted a series of interest rate hikes by central banks, even as economic activity has started to plateau or slow,” it flagged.
The Singapore economy is seen to grow at a below-trend pace next year as external headwinds intensify. The stark outlook comes as the inflation-growth dynamics of the global economy have turned less favourable in the past few months, says the Monetary Authority of Singapore (MAS) in its macroeconomic review on Oct 27.
MAS expects Singapore’s GDP to grow at 3% to 4% for whole of 2022, and moderate to a below-trend pace next year. On the other hand, sustained cost pressures will keep core inflation above its historical rate into 2023.
