News analysis

MAS' surprise policy move seen as attempt to manage inflation expectations, defend purchasing power

A stronger Singapore dollar will help the most with food and energy prices, which have been on the rise. ST PHOTO: LIM YAOHUI
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SINGAPORE - Of all the economic variables, inflation is the trickiest one for policymakers to manage.

Inflation rises when demand outstrips supply. That usually means the economy is doing well and more people are buying goods or paying for services.

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