18 Feb '11, 2am

The Government has raised its inflation forecast for the yr by one percentage point to between 3% and 4%

The Government on Thursday raised its inflation forecast for the year by one percentage point to between 3 per cent and 4 per cent. -- ST PHOTO: CAROLINE CHIA NEW official projections have confirmed that rising prices will be the key economic issue this year and a major focus for today's Budget. The Government on Thursday raised its inflation forecast for the year by one percentage point to between 3 per cent and 4 per cent. 'The key macroeconomic challenge this year will not be growth, but dealing with emerging cost pressures,' said Mr Ravi Menon, permanent secretary for Trade and Industry, at a briefing on Thursday. This is because demand in the economy is growing faster than supply, but he also added that 'the situation will not be as acute as in 2007 and 2008'. Inflation could be as much as 5 per cent to 6 per cent in the first few months of the year - levels last seen...

Full article: http://www.straitstimes.com/BreakingNews/Singapore/Story/...

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