The real danger comes when business and consumer confidence start taking a hit, economists added.
CIMB Private Banking economist Song Seng Wun said even though prices of goods and services have been rising, pent-up demand and "revenge spending" have so far helped to sustain consumer demand. But if prices continue rising - fuelled by the war in Eastern Europe or further supply chain snarls due to lockdowns in China - to the point where people feel that living costs have outpaced wage growth, they may become more cautious and pull back on spending.
Likewise, businesses have been able to pass on rising costs to consumers and keep on hiring on the back of continued demand. But once the latter wanes, firms worried about the future may turn to cost-cutting measures, such as paring back investments, hiring or worse, layoffs.
This spiral down in economic activities is "when things start to get serious", Mr Song said. "This is where we may see the start of slow