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Fight against inflation may need additional fiscal support on top of monetary policy tightening: Analysts
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Core inflation in the first four months of the year has averaged 2.7 per cent.
ST PHOTO: THADDEUS ANG
SINGAPORE - Supply chain disruptions caused by the Ukraine war and Covid-19 lockdowns in China may continue to fuel inflation that threatens to squeeze consumer wallets and cut business spending, analysts said.
But an aggressive response by central banks - the guardians of price stability - could result in similar outcomes, so governments may need to provide temporary assistance to vulnerable households and businesses, they added.
