Table of Contents
1. Introduction 2
2. Economics performance of inflation in Singapore over the last five years 2
2.1 Definition of inflation 2
2.2 Economics performance 3
3. Impacts to the future economics performance 8
3.1 Main contributors of the inflation 8
3.2 Impacts on the economy 8
3.3 Government’s control of the inflation 10
4. Conclusion 10
Inflation in Singapore will be discussed in this report. First, inflation will be defined and different types of inflation will be analyzed. Consumer price index will be used to measure the inflation rate is this report. Then, in the second part, the detailed performance of inflation, CPI, will be shown in tables and graphs. The fluctuations of CPIs and relationships between each item will be illustrated. In the third part, we will discuss how inflation impacts the future performance of the economy and how the government will try to control the inflation rate. Finally, there will be a conclusion of the whole report.
2. Economics performance of inflation in Singapore over the last five years
2.1 Definition of inflation
Inflation refers to the rise of the general level of prices for goods and services and the falling of purchasing power over a period of time in an economy. Inflation rate is used to measure the price inflation. Consumer Price Index (CPI) is commonly used to measure the degree of inflation. It is a measure of the price turbulences in a fixed basket of services and consumption goods commonly consumed by citizens over time. The selection of goods and services and their weights are kept same with the base period in order to make sure that the changes of CPI only reflect the price changes. (Department of statistics Singapore, press release Singapore CPI, 2012)
There are five main types of inflation according to the different causes. First is demand-pull inflation, which occurs when there is excessive demand for goods and services. The prices...