OUTLOOK
The authorities pointed out that the world prices of most food products and energy have remained moderate in recent months.
” The import costs of Singapore’s middle and last manufactured products have also continued to decline significantly,” according to MAS and MTI.
” As the air travel and hospitality industries around the world restore offer,” according to the statement, “inflation for services associated with international travel should ease further over the course of the time.”
The “gradually strengthening”  , Singdollar trade-weighted exchange rate may also continue to anger Singapore’s imported inflation in the weeks ahead.
Within Singapore,  , increases in system labour charges have slowed in combination with the cooling employment market.
Companies are also good to , continue passing through the earlier increases in employment and other company costs to client prices, albeit , at a lowered speed, said MAS and MTI.
As transfer cost forces continue to decline and the domestic labor market tightens more, core inflation is anticipated to remain on a gradual, mitigating pattern for the rest of 2024 and, possibly, reverse “more noticeably” in the fourth quarter of the year.
Due to the larger projected COE source, personal transportation prices is expected to decrease from last year, while casing inflation may increase as the supply of housing units for hire increases over the course of the year.
The authorities , projected key inflation to average , 2.5 per share to 3.5 per cent for 2024.
Core inflation is anticipated to increase at 1.5 % to 2.5 %, excluding the transitory effects of the GST increase.
According to MAS and MTI,” The estimates range for CPI-All Things inflation is being reviewed and will be updated in the July 2024 Monetary Policy Statement.”
As new geopolitical shocks, severe weather events, and renewed travel disruptions around the world was “upward pressure” on international energy and food commodity prices, as well as transport costs, they added, there are still risks to the prices outlook.
” Domestically, a stronger-than-expected labour market could lead to a re-acceleration of wage growth. In contrast, a materially unexpected contraction of the global economy might result in a greater easing of the cost and price pressure.