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Economists expect headline inflation to hit 5% in 2022, leading to slightly slower economic growth: MAS survey

Economists expect headline inflation to hit 5% in 2022, leading to slightly slower economic growth: MAS survey

SINGAPORE — Private economists expect headline inflation in Singapore to hit 5 per cent this year, up from their March estimate of 3.6 per cent, leading them to slightly downgrade their forecast for full-year economic growth.

A survey of the economists by the Monetary Authority of Singapore (MAS), published on Wednesday (June 8), showed that, on average, they now expect the economy to expand by 3.8 per cent in 2022, down from their March estimate of 4 per cent.

The quarterly survey of professional forecasters also found that the average forecast for core inflation, which excludes private transport and accommodation costs, rose from 2.7 per cent previously to 3.4 per cent for 2022.

The survey collated responses from 24 economists and analysts who closely monitor the Singapore economy.

Inflation, the measure of how fast the prices of goods and services rise, is making headlines around the globe as the biggest economic challenge of 2022.

Since the start of the year, a host of pressures — such as the surge in economic activity as economies emerge from the pandemic, the war in Ukraine, and supply chain problems — have led to higher consumer prices across the board.

Even though the economists expect higher inflation in 2022, they believe it will ease next year. Headline inflation is expected to come in at 3 per cent in 2023, while core inflation is forecast to be 2.8 per cent.
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