The Inflation Process and Expectations in Singapore

This country note discusses measures of inflation used in monetary policy formulation in Singapore, and assesses the relative influence of global and regional factors in determining domestic inflation dynamics. It is found that the regional factor has grow n in importance as a source of external inflationary pressures, although domestic cost pressures and inflation expectations have continue d to play significant roles. Indeed, the central bank's gauge of inflation expectations extracted from survey data prov ides the best forecasts of near-term inflation outcomes.Full Publication: 'http://ssrn.com/abstract=2870167' Inflation Mechanisms, Expectations and Monetary Policy