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An Analysis of Inflation in Singapore

Zixia Huang


In August 2022, inflation in Singapore soared to 7.5%, and the CPI for all items for general households rose by 6.1 per cent, higher than the 2.3 per cent increase in 2021 (Singapore Department of Statistics, 2023). This work uses AD-AS model, exchange equation (primarily money supply and velocity of money), and the concept of “hot money” to identify and comprehensively evaluate factors causing inflation in Singapore in 2022. This work also includes four key recommendations to the Singapore government and the Monetary Authority of Singapore (MAS) based on the overall conclusion reached in the last section of this essay.


Inflation; Singapore Economy; AD-AS Model; Monetary Equation; Hot Money

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Included Database


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DOI: http://dx.doi.org/10.18686/fm.v8i5.10242