ECONOMISTS have flagged rising inflation as a possible cause of concern, after they upgraded their forecasts for inflation this year.
They also upgraded Singapore's growth forecasts for this year, mainly due to the strong performance in the first three months of this year, a survey of 21 economists by the Monetary Authority of Singapore showed.
The survey also showed that the median forecast of economists for inflation is 4.1 per cent, a notch higher than the 4 per cent they predicted back in March and the Government's own forecast of between 3 per cent to 4 per cent.
Growth should come in at about 6.2 per cent, the poll of economists showed, within the Government's own 5 per cent to 7 per cent range.
The upgrades are not surprising given that the Singapore economy grew 8.3 per cent, much stronger than most had expected, said economists.
This is despite the median growth forecast the period between April and June to hit just 2 per cent, they added.
-- ST