Singapore inflation worrying: ING Bank economist

Growth in Asian economies should pick up in the second half of the year, as Europe puts the worst behind it, said a senior economist at Dutch ING Bank.

Singapore should see growth pick up and end the year with a respectable 2.7 per cent expansion, at the higher end of the official 1 to 3 per cent forecast range, said the bank's chief economist for Asia, Mr Tim Condon.

But he warned that inflation in Singapore may accelerate even faster if it is not capped at a reasonable rate.

Highlighting inflation as a key worry for Singapore, after the rise in the consumer price index hit 5.2 per cent in March, he worries that the persistently high inflation rate could alter people's expectations of inflation and disrupt price stability. This could have the effect of pushing inflation much higher than usual, he said.

ORIGINAL SOURCE: http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_796589.html
Content used in this not-for-profit blog remain the property of their respective owners.