News analysis

Consumers are driving inflation in Singapore. Here’s why

An increase in consumption follows a steep rise in personal savings, reaching a five-year high of $103 billion. ST PHOTO: KELVIN CHNG
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SINGAPORE - Singaporeans are worried about soaring prices, but at the same time a lot of them are still out shopping for stuff they can do without, and in the process stretching inflation out for at least another year.

Such discretionary spending will be the biggest contributor to inflation this year and next, Singapore’s central bank said.

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