What causes Singapore inflation high?

What causes Singapore inflation high?

Many people agree that the rise in Singapore consumer prices has been mainly due to higher prices for local transport, housing and food.

The inflationary pressures have prompted Singapore's central bank - Singapore MAS to strengthen the Singapore dollar against other currencies, which helps to curb inflation directly by making imports such as foodstuffs cheaper.

The price of food and other commodities will continue to rise over the medium to long term as demand grows, especially in the emerging economies, while capital will continue to flow from the developed economies to emerging economies, as investors seek better returns from Asian assets,these two factors will be a source of inflation bias in emerging Asia over the medium term.

If we examing the recent food prices hike, much of these increases reflect the impact of supply disruptions, and these are largely expected to be of a temporary effects.

Capital inflows are also not likely to persist at the volumes seen in year 2009 and 2010, as monetary policy settings in USA aand other developed economies on the way of normalising.