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514). A list of annual inflation rate at Statistics Singapore website shows an increase of inflation rate from 2005 to 2007.(2)
Inflation is generally caused by two theories, Demand Pull and Cost-Push Inflation.
Demand Pull inflation is a result of higher consumer demand for too few goods. It is common in expanding economy where government increase spending and employed workers have more spending power. As demand rise to purchase the same amount of goods, prices increase resulting in inflation.
Cost-Push Inflation is cause by higher production cost resulting in inflation on the price for products and services...
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