OUTLOOK
Core inflation is anticipated to remain on a continuous moderating trend over the course of the year as import cost pressures continue to fall and domestic labor market tightness eases, according to MAS and MTI.
“Although crude oil prices have risen in recent weeks, world prices for most meals supplies, as well as intermediate and last manufactured goods, have continued to decline, ” the officials said.
In addition, as offer conditions improve in the hospitality industry around the world, inflation for services related to overseas travel may decrease over the course of the year. ”
According to MAS and MTI, Singapore’s import inflation if continue to be tempered by the steadily rising Singapore buck trade-weighted exchange rate in the coming months.
Domestically, unit labor costs have decreased in parallel with the cooling labor market.
Businesses are likely to continue to lower consumer prices as a result of the earlier rises in labor and other company charges, according to MAS and MTI.
In addition, personal transportation inflation is anticipated to be lower than it was last year due to the larger COE provide being projected this year.
As the source of housing products increases over the course of the time, housing prices may continue to decrease.
Both title and core prices were expected to be on average 2. 5 per share to 3. 5 per share for 2024. Headline and core inflation are anticipated to increase by 1 %, excluding the transitory effects of the 1%-point increase in the GST rate to 9 %. 5 per share to 2. 5 per share.
However, there are still risks of inflation as new political shocks and severe weather events occur all over the world, which could cause prices for global food and energy prices as well as shipping costs to rise.
Domestically, stronger-than-expected employment market could even lead to re-acceleration in wage growth.
“Conversely, an unexpected strengthening in the global economy could cause a greater lowering of cost and price pressure, ” said MAS and MTI.