This is what creates the potential for the ‘second round effects’ that seek to avoid the real cost of higher energy prices to sustain above target inflation even as the original impulse to headline inflation from the direct effect of higher energy prices on household utility bills recedes. [24] In other words, the level of energy prices is likely to have implications for how much intrinsic inflation persistence exists in the aftermath of an energy price shock. If a rise in energy prices in seen as permanent, it is more likely to trigger greater intrinsic inflation persistence. And the greater the proportion of any energy price rise that is seen as being lasting rather than temporary, the greater the intrinsic inflation persistence that is likely to follow. Page 9  Making assessments of this type is particularly important at present. Headline inflation is set to fall sharply in the coming months, both because the big contributions from energy price rises last year will drop out of the annual calculation and because wholesale gas prices have reverted of late. But the level of energy prices remains well above pre-pandemic levels, so the scope for some sustained momentum in inflation stemming from greater intrinsic inflation persistence exists.
The establishment of the credit bureau is likely to increase credit business, lead to more competitive pricing of credit facilities and lower credit loan defaults and delinquency rates. To address the concerns over the treatment of credit data, MAS would follow two broad principles. 1  Refers to the submission of customer’s payment histories on their credit facilities. Positive data refers to timely payment (i.e. a good customer) and negative data refers to overdue payments. 2  BIS Review 7/2002  First, it is important that individuals have access to their own credit files and to have any inaccurate information corrected. Any dispute resolution process should be timely and effective, and should also be covered in the Consumer Banking Code that ABS is currently working on. Second, it is also important that individual privacy is respected and customer data are not misused for purposes other than what they were originally intended for. A good starting point is the principle of reciprocity on data usage, which all participating members to the bureau will need to adhere to. High standards of confidentiality is also expected of both the bureau operators and participating members. The ABS will continue to work with MAS to ensure that these principles are observed. The launch of the consumer credit bureau will mark the beginning of a new risk management process in Singapore. It will further bolster the integrity and transparency of Singapore’s financial sector.