Introduction: What is inflation and inflationary growth?

 Aloha everyone! Wondering why food prices are shooting up yearly? Wondering why HDB prices are so absurdly high nowadays? Wondering why COE prices are so high? Fret no more! We are a group of dedicated professionals and economics enthusiasts from the Monetary Authority of Singapore doing a simple project to inform you, the consumers about inflationary growth in Singapore. This is an effort by the MAS to educate consumers such that they are more aware of the reasons behind the rising costs in our country. Today, after browsing through our simple site, you will know more on the following things!

1. What is inflation and inflationary growth

2. The causes of inflation

3. The impacts of inflationary growth 

4. Possible Solutions to inflation

So sit back! And Scroll!

So what exactly is inflation and inflationary growth?

Inflation, in short, can be defined as a situation when where is a sustained and inordinate increase in general price level. In simpler terms, the prices of goods such as your daily commodities like bread, toilet paper and toothpaste, are under the effect of inflation when their price tags change positively on super market shelves! This would mean a fall in the value of money and hence reducing the purchasing power of money! Something none of us kiasu Singaporeans would want to happen. Most countries face inflation! Singapore has an inflation rate of about 3~5% every year, peaking at 5.7% last year 2012. But fret not! Recent reports this year has shown that inflation has eased to a 3 year low of 1.5% in April this year! Seems like a good time to do some shopping, fellow Singaporeans!

On to inflationary growth!

Now that you know what inflation is, can anyone make a quick guess on what exactly is inflationary growth? Ok, I'll give it you!

Inflationary growth refers to growth from any economic activity that leads to inflation, or when actual growth far exceeds that of potential growth. 

Sounds negative doesn't it? Fret not! There are always two sides to the coin, which we will expand on in the next post! Hope you guys have enjoyed reading this post and now that you have increased your knowledge towards inflation and inflationary growth, go along and explain to your grandparents why their bunch of lotus roots cost more than it was last year and why 10cents,40 years ago could get you a cake and yet in the 21st century, 10 cents could get you a trip to the public toilet to make some chocolate cake.

Comments? Questions?

Post them below and we will get back to you!

P.s.

We are simply a group of students doing an economics project playing the role of the government informing consumers about inflationary growth. We are NOT  MAS (Monetary Authority of Singapore) or economics professionals.