In the month of August, the government of Singapore dropped another bomb on the public when it announced the rise in the inflation rates. According to government officials, the inflation rate increment was not expected at all.
Inflation Rate Rises by 5.1%
On Friday, September 23, the government of Singapore shared figures for core inflation. They revealed that the inflation rate in the country had risen even in the month of August.
According to government officials, a constant rise is being witnessed in the prices of services and food. As of September 23, the data is available on the Singapore Government’s website for viewing.
The rise recorded in the inflation rates in the month of August is higher than the rise recorded in the month of July. According to the July report, the rise recorded in the inflation rates for the particular month was 4.8%.
As the inflation rates are constantly moving higher, it is an indication that the in the coming months, the inflation rate may end up hitting a 14-year high.
This is because the inflation rates are inching closer to the particular rise and if no stop is put to the rising inflation rates, the situation may become dire for the locals.
Singapore is Close to hitting 14-Year High Inflation
It was back in 2008 when the government of Singapore reported a year-over-year high inflation rate in the month of November. For the particular month, the government of Singapore reportedly recorded a 5.5% rise in the inflation rates.
This means that for the first time in 14 years, the country is at it again and may soon hit the 5.5% level and may even cross it. This is because the global economy is not doing well and the situation is getting worse by the day.
Even the major economies from around the world such as the United States, China, Germany, and many more are suffering tremendously due to the rising prices of services, food, and energy.
Core Inflation Expectations by Reuters
According to Reuters, the expected core inflation rate for Singapore for the month of August was 5%. It was the peak prediction made by the Reuters analysts for Singapore for the particular month.
However, the actual core inflation rate was higher than that for the month of August. It is also worth mentioning that the core inflation does not include private transport costs and accommodation.
Overall Inflation for Singapore for August
The overall inflation rate, which is dubbed the consumer price index (CPI) has recorded an even higher surge. The report shows that the overall inflation rate recorded for the month of August is 7.5%.
This is much higher than the expectations shared by economists from all over the world. The average CPI predicted by the economists for the month of August was 7% but the actual was 7.5%. For the month of July, the actual CPI for Singapore was 7%.