Monday, February 25, 2008

Inflationary Asia

Inflation is creeping up across Asia. The headline figure in Singapore has hit a 25-year high with inflation hitting 6.6%.

The figure seems to be higher than expected but the Ministry of Trade and Industry said the January inflation figure was 'consistent' with the government's official inflation forecast.

As pointed out by the AP report, the Singapore government recently raised its inflation forecast for the year to 4.5-5.5%, faster than the 3.5-4.5% announced in November. The Straits Times today said that inflation in Singapore could hit levels not seen since the oil crisis of the late 1970s.

The Singapore government will no doubt think of more ways to contain inflation. An even stronger Singapore dollar is definitely a certain policy option at this stage.

While Singapore's inflation rate seems higher than expected, the Consumer Price Index across the causeway seems too tame in the current environment. According to Bloomberg, Malaysia's inflation is set to hit a 10-month high of 2.9% this year.

Like Singapore, Malaysia has a very open economy. As a result, the two countries do pay the price for imported inflation.

Sophie's World has always had a nagging feeling that the inflation rate in Malaysia is understated. Prices of some items, especially imported goods, in Malaysia seem to be rising more rapidly than those in Singapore.

In many cases, prices of certain items in Malaysia are higher than or equivalent to those in Singapore. This is just Sophie's World unscientific observation. :-)

Even the threat of higher inflation has become an election issue in Malaysia. Check out the Democratic Action Party's campaign song (youtube video above), which includes a pledge to tame inflation in the country. Is there a need to tame it if it is rising at less than 3%?

While inflationary pressure is rising across Asia, the fast-growing region is not expected to see hyperinflation. Asia is still expected to see healthy, albeit slower, growth despite the increasing likelihood of a recession in the United States due to the sub-prime woes.

Earlier postings:
Rising cost of crime, 1 June 2007
Rising cost of living in Malaysia
, 16 Nov 2006
Rising cost of living in Singapore
, 16 Nov 2006


Anonymous said...

You've made some really good points there. I checked on the web to find out more about the issue and found most people will go along with your views on this website.

My website - Www.Bucket--Truck.Com
Review my web site used bucket trucks for sale

Anonymous said...

Howԁy, i reaԁ yоur blog fгоm time to time and і оwn а simіlar оne and i was juѕt wondеrіng іf you gеt a lot of sρam remarks?
If ѕо how dο you protect аgainst it,
any plugin or anything you can adviѕe? Ι get so much latelу
it's driving me mad so any assistance is very much appreciated.

Here is my weblog tens units
Also see my website - Tens Unit hire

Anonymous said...

I'm really enjoying the design and layout of your website. It's a vегy easу on the eyes which makes іt
much morе enјoyable for me to come here and νiѕit
more οften. Diԁ you hiгe out a ԁeveloρeг to create
yοur theme? Gгeat work!

Here is my web blog :: criar p঩na facebook blog

Anonymous said...

What's Happening i am new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I hope to contribute & aid different users like its aided me. Great job.

My web site ... how to flip cars for money

gggg said...

@=>Indian Bangla Hot Desi 3x Sex Xxx 3gp mp4 HD Video Free <=@

»1. Porn Teen Videos - Sex Tube, Young XXX Movies, Teenage

»2. XNXX.COM: Free Porn, Sex, Tube Videos, XXX Pics, Pussy

»3. Indian Video Songs - Android Apps on Google Play


»5. Free Sex Videos,Mobile Sex 3gp mp4 XXX Videos Movies

»6. Hot Pakistani Girl Zainab Ali Leaked Sex Video www.asian

@=>Xnxx Video Download - Free Mp3 Download - Downloads<=@

»7. Amateur Girls Sex Videos - Teen & Milf Wife Cum Shots

»8. Free Asian Porn Movies - hot asian sex, sexy asian girls

»9. School Girl Sex With Teacher Bathroom MMS-Indian Girls

»10. Indian Teen schoolgirl homemade sex scandal - XVIDEOS ...

»11. Girl2Sex Full Indian Girls Sex Videos Free Downloads :: Full

»12. Sunny Leone Hot Videos, Sunny Leone Sex Videos ,Sunny

»13. Sexy Sunny Leone - Free Porn Videos - YouPorn xnxx video,porn

»7. Amateur Girls Sex Videos - Teen & Milf Wife Cum Shots

chenlina said...

michael kors handbags
beats by dr dre
air jordan pas cher
coach outlet store online
michael kors outlet
cartier watches
louis vuitton
longchamp bags
coach outlet
air jordans
jordan 3
nike air max
fitflops sale clearance
oakley sunglasses
oakley sunglasses
louis vuitton outlet
lebron shoes
timberland outlet
hollister clothing
michael kors handbags
adidas superstars
burberry outlet
tiffany outlet
toms shoes
nike air force 1
coach outlet online
michael kors outlet online
nfl jerseys wholesale
nike air max 90
ray ban sunglasses
michael kors handbags
louis vuitton handbags
louis vuitton outlet
coach outlet store online clearances
nike trainers
true religion outlet
nike sb shoes
kate spade handbags
coach factory outlet
nike factory outlet