Inflation has most likely peaked and will average three to four percent in 2011, said Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS).
The Consumer Price Index (CPI) climbed 5.2 percent in Q1 2011 but the MAS expects price increases to moderate, due in part to the robust Singapore dollar.
The currency is exchanging at close record levels against most major currencies and has played a key role in keeping prices in check.
The central bank pre-emptively tightened exchange rate guidelines in April 2010 and followed up with more tightening measures in October 2010 and April 2011.
“Allowing the Singapore dollar to strengthen has had a dampening effect on inflation in Singapore, which would otherwise have been much higher,” Mr. Menon noted.
To contact the journalist, you may send your message to editor@propertyguru.com.sg