Inflation Rate By Country (2022): How Does Singapore Fare?

Unless you’ve been living under a rock, you’ll know that everything from food and groceries to electricity bills and petrol has been increasing in price.

That is the effect of inflation, which has been skyrocketing in Singapore since the start of 2022 and stands at 7% in July 2022.

While many of us are already feeling the brunt of inflation and complaining about $7.50 economic noodles at Kopitiam, many overseas are having it much worse.

Thanks to inflation and poor governance, Sri Lanka is now facing a complete economic meltdown with many citizens trying to flee the country. Elsewhere, Zimbabwe is experiencing a whopping 257% inflation rate. Imagine “economic” noodles being priced at $50 instead!

So, here’s a look at how Singapore is faring as compared to other countries so far when it comes to inflation.

TL;DR: Inflation Rate By Countries

Jump to:

• Inflation rate by country
• What’s causing global inflation?
• What’s causing Singapore’s inflation?
• What can we do to hedge against inflation?

Inflation Rate By Country

Singapore’s inflation rate has been kept relatively in check when compared to G20 countries. In June 2022, the median inflation rate of G20 countries would be 7.795% while Singapore’s inflation rate was at 6.7%.

That said, every country’s situation is unique, so here are the latest inflation data available sorted by country.

Inflation Rate Across G20 Countries

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Source: Trading Economics

Inflation Rate Across the World

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Source: Trading Economics

What’s Causing Global Inflation?

Inflation has spiked up to 3.4% at the end of 2021, and the forecasted inflation rate globally is predicted to average 7.7%.  For context, during the global financial crisis in 2008, the global inflation rate was at 9%.

In 2022, global inflation is largely driven by a number of factors such as:

• the Russia-Ukraine war
• the global supply chain issues
• the global energy crisis (further exacerbated by the war)
• the pent up consumer demand after the pandemic
• and deglobalisation

In essence, inflation has risen due to rising demand and falling supply of goods and services.

What’s Causing Singapore’s Inflation?

Back at home, Singapore has not been spared from the issues that plague the world.

The global supply chain disruptions which have been ongoing since 2021 have caused the price of our imports to go up. Likewise, the global energy crisis has also caused electricity and gas prices in Singapore to shoot up, which in turn affects food prices and other services.

Moreover, deglobalisation has begun with countries prioritising their own citizens. The most prominent example for Singaporeans would be Malaysia banning exports of live chickens in order to provide for Malaysians first. Such moves will cause the supply of chickens in Singapore to fall and hence cause a drastic increase in price assuming that demand remains the same.

Thankfully, thanks to the Singapore government, we have been diversifying our sources for such goods and were able to avoid such an issue. The same applies to our energy and gas sources.

That said, we are extremely reliant on imports for survival and diversification can only do so much to cushion the impact of issues around the world.

For a deeper understanding of what exactly is inflation, check out this article:

What Can We Do to Hedge Against Inflation?

As inflation reduces our purchasing power, the only way that we can protect ourselves against inflation as individuals is to earn more, grow our money, or cut our spending. So here are some quick tips listed in order of increasing difficulty as well as some helpful links to get you started.

1. Cut Our (Unnecessary) Expenditure

Probably the first thing that comes to people’s minds when inflation is mentioned is to cut our spending.

Here are some guides to help you out:

• 5 Practical Budgeting Tips to Help You Beat Inflation in Singapore
• Meal Prep: Save on Food, Groceries, Electricity, and More!
• Expense Tracking Apps You Should Use: How to Budget Like a Boss

2. Negotiate For a Pay Raise

Of course, there is a limit to how much we can save, so the next best thing is to ask for a pay raise or get a job if you don’t have one yet.

3. Start Investing

The last but most risky tip is to start investing.

Even if you’re someone who doesn’t have much time or does not want to go too in-depth into investing, you could at least consider low-risk investments such as:

• Fixed Deposits backed by banks
• Singapore Savings Bond (SSB) backed by the Singapore Government
• Insurance Savings Plans with capital guaranteed
• Cash Management Accounts that grow your investment funds at ultra-low risk

These provide you with a much better interest rate than your savings account with a measly 0.05% base interest rate.

For those of us who are more curious and want to secure your financial future in the face of inflation, here are some useful guides to check out:

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice to buy or sell any investment product. ​Readers should always do their own due diligence and consider their financial goals before investing.