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Government may consider supplementary budget to deal with growing costs, say Maybank economists

The Edge Singapore
The Edge Singapore • 3 min read
Government may consider supplementary budget to deal with growing costs, say Maybank economists
The higher inflation is driven by food and energy, say MAS and MTI / Photo: Albert Chua
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Singapore’s core inflation for April hit its highest level in more than a decade, and the pressure will further increase in the coming months.

While this may ease off towards the end of the year, “there remain upside risks to inflation from geopolitical and pandemic-related shocks,” according to the Monetary Authority of Singapore and the Ministry of Trade and Industry on May 23.

Driven by higher food and power prices, core inflation for April hit 3.3%, a pick up from 2.9% gain recorded in the preceding month. CPI-All Items inflation, meanwhile, was up 5.4% - the same pace seen in March.

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