Alvin Tan on Government support to cope with inflation

The Government will continue to monitor the prices of consumer goods closely and be prepared to do more if necessary. Minister of State for Trade and Industry and Monetary Authority of Singapore (MAS) Board Member Alvin Tan gave this assurance in reply to an MP’s question in Parliament on Wednesday (May 10). He said CPI-All Items inflation in Singapore rose from 2.3 per cent in 2021 to 5.5 per cent year-on-year in March 2023. The increase in prices was mainly driven by the higher cost of private transport and food. He highlighted the measures taken by the Government to help Singaporeans cope with inflation. He said on average, for lower-income households, the enhanced GST Voucher scheme and Assurance Package will fully cover the increases in spending due to inflation and the GST rate increase this year. For middle-income households, the measures will substantially cover the increases in spending. Mr Tan said the money policy tightening moves of the MAS since October 2021 have helped to temper imported cost increases, including for food. He said the effects of the past tightening moves are expected to continue to dampen inflation over the course of the year.