SINGAPORE – Inflation in Singapore is expected to peak in the next two to four months and will start to ease thereafter, said Deputy Prime Minister Lawrence Wong.

But Mr Wong, who is also Finance Minister, added that the extent of this easing towards the year end and where the new inflation rates will stabilise at are big uncertainties.

Inflation rates here may very well settle at a higher rate given the geopolitical environment, supply chain issues and how economies are transitioning towards becoming more sustainable, said Mr Wong.

He noted that they are not likely to return to the rates Singapore had been used to over the last decade or so, as zero to 1 per cent inflation was a historical anomaly and never used to be so low.

“We will just have to pay that little bit more in order to be greener, in order to have more resilient supply chains, so we have to be prepared for that new equilibrium where inflation is concerned,” said Mr Wong.

He was speaking to Bloomberg editor-in-chief John Micklethwait on Monday (Aug 15), who had asked during an interview about inflation here, and if more could be done to help the city state’s most vulnerable people.