The risk of stagflation has increased due to the conflict between Russia and Ukraine

Although the military conflict between Russia and Ukraine has increased the risk of stagnant inflation (stagflation), most experts and scholars believe that Singapore does not need to worry too much at this stage and should focus on curbing inflation. 

Assoc Prof Yip Sau Leung from NTU’s Economics division said that while stagflation is now a possibility following the Russia-Ukraine conflict, it is still too early to draw conclusions. One of the key indicators is the international crude oil price, he added, pointing to the two stagflations in the US in the 1970s that caused international oil prices to rise about three to four times.

Read the article (in Chinese, and for subscribers).

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