Prices View
In July, MAS reduced its entire inflation objectives for the year by an average of 2 to 3 percent.  ,
In its most recent estimates, the central bank estimated that headline inflation is likely to increase by about 2.5 percent this year, up from 4.8 % last year, and that it will ease even further to 1.5 to 2.5 percent in 2025.
Accommodation prices should decrease as licensing requirement falls, partially offsetting an expected pick-up in secret transport inflation amid still-firm car purchases, it said.
Core prices is also , expected to total around the mid-point of the estimates range of 1.5 to 2.5 per share in 2025, amid average underlying price pressure.
Imported expenses are expected to be widely firm next year, due to a potential loosening of oil production cuts and favorable conditions, according to MAS.
Singapore’s labor costs are expected to rise more progressively as a result of a slowdown in minimum wage growth and a rise in productivity.
The dangers to Singapore’s prices perspective are “more healthy” compared to three months ago, MAS said.
It may take longer for system labor value rise to reasonable and, in turn, for services cost inflation to normalize if there is stronger-than-anticipated demand for labor according to upsides in GDP growth, it said.
Import prices may rise as a result of rising geopolitical conflicts and price shocks.
But, the central bank predicted that a significant decline in the world economy may result in a sudden easing of cost and price pressures, leading to domestic inflation to be significantly lower than expected.
STRONGER-THAN-EXPECTED GROWTH
Based on progress quotes,  , the Singapore market grew 4.1 per share on a year-on-year base in the second quarter, extending the 2.9 per cent rise in the previous quarter.
The central banks reported that task increased in the modern services cluster, which was mostly fueled by a rise in manufacturing output, particularly in the electronics sector.
Singapore’s growth may be sustained for the rest of 2024 due to the ongoing upsurge in the technology and business processes as well as the easing in global economic conditions, it said.
It stated that it anticipates that GDP growth will be in the upper half of the forecast range of 2 to 3 percent for the year as a whole.
However, MAS pointed out” significant uncertainty” around the economic outlook next year.
A” sharp escalation in geopolitical and trade conflicts” could put a significant strain on both domestic and global investment and trade, it warned.
The pace and impact of global macroeconomic policy easing, as well as the impact on the electronics industry, are also uncertain.