Singapore's inflation rate rose to 5.2 per cent on-year in March 2012, from 4.6 per cent the previous month. MAS has also projected that inflation will likely remain elevated over the next few months, before easing gradually in the second half of this year.

In a Labor Day message, someone mentioned that wages should be kept ahead of inflation and must rise faster.

While it is a simple logic for the immediate solution, the equation is not uni directional and problem solved. It is a vicious loop with a exponential feedback effect.

Bus drivers have recently announced a 16% wage hike to "cope with inflation". Nurses and doctors are going to be paid more. Basically, most sectors will be seeing a wage increase if they are capable of giving it.
Property prices have also been on a steep climb, resulting in rising rentals. This will have a significant ......