Singapore (VNA) – Based on latest data from Singapore’s Ministry of Trade and Industry and Industry (MTI), many economists have forecasted that the country’s inflation will remain high in 2023, despite signs of reduction from global price pressures.

In 2022, overall inflation came in at 6.1%, up from 2.3% a year ago, while core inflation, which excluded accommodation and private transport, came in 4.1% year on year, an increase of 0.9% year on year.

Singapore’s overall inflation is forecast at 4.5-5.5% in 2023, while core inflation is forecast at 2.5-3.5% after excluding impacts of increase in Goods and Services Tax (GST).

Monetary Authority of Singapore (MAS) and the MTI have also warned about risks that could lead to high inflation rates being “persistent than expected”, especially after China reopened its market.

However, both MAS and the MTI are still optimistic about the second half of the year. According to their scenario, the tightening of the domestic labour market will be relaxed and global inflation will be moderate, thereby contributing to soften Singapore’s inflation./.