The inflation rate of Singapore is double the inflation rate of Malaysia, and it is higher than Australia and Hong Kong. While the level of inflation is considerably high across the globe, the inflation of Singapore is considerably higher in comparison with the average level for a number of reasons. Approximately a million of individuals added to the population of Singapore since the last few years and caused the growth of population from 3.7 million reaching 4.6 million. There had been an overheated growth of economy by 7 per cent on yearly basis. The key reasons for the same can be hike in GST, fees of hike kindergarten, hike, utilities and transportation. The immigration of open-door ended up bringing a number of foreigners and ended up pushing population to approximately 4.7 million individuals.
Government measures for Achieving Stable Price
Singapore has not ended up sparing the impacts of these wider global establishments. The monetary policy centred with exchange rate has achieved remarkable success since the past few decades. This success is evident in the sense to secure stability of price among rapid growth of economy, and an account of capital and open trade. Inflation of consume price on an average has been at 1.3 per cent per annum between the period of 1985 and 2005 that is lowest all across the globe.
There has been a slow growth in the economy of Singapore, but the openness of the city to global investment and trade has been continuously providing a fundamental base for the dynamism of the economy. A transparent environment of regulation, buttressed by the property rights of well security, provided with the commercial security for the resilient and innovative private industry. There is existence of inflation when the supplies of money end up exceeding the available services and goods. Or there is attribution of inflation to the financial consideration of budget deficit. There may be financing of deficit budget by the creation of additional money.