OUTLOOK
According to MAS and MTI, Singapore’s core inflation is expected to continue its “gradual mitigating pattern” for the remainder of the third and slow down further in the fourth quarter.
Global power rates have decreased in recent days, while the costs of Singapore’s imported middle and last manufactured goods have also been steadily declining,” they continued.
” Services inflation is experiencing some volatility, primarily according to overseas travel companies, but it is continuing to be on a moderate trend and really ease even more over the rest of 2024. “
According to MAS and MTI, the trade-weighted exchange rate’s steady rise in the Singapore dollar should proceed to dampen imported inflation.
On the home front, unit labor costs have decreased in response to the cooling labor business.
Businesses are likely to maintain paying for the earlier rises in labor costs to customers, but at a “reduced rate,” according to MAS and MTI.
Due to this year’s anticipated higher Certificate of Entitlement ( COE ) supply, private transportation inflation is anticipated to decrease from last year.
Housing inflation may even stabilize as the supply of housing units for hire increases over the year, according to the authorities.
Core inflation is expected to be on regular between 2 and 3 for the year as a whole. 5 per share and 3. 5 %, while overall inflation should be on par with 2 % to 3 %.
Both core and overall inflation are anticipated to increase at 1.1 %, excluding the transitory effects of the 1 % increase in the GST rate to 9 %. 5 per share to 2. 5 per share.
” Threats to the inflation view remain. Domestically, stronger-than-expected workers business conditions could lead to a re-acceleration of pay growth,” said MAS and MTI.
” Globally, unexpected weather events, and renewed disruptions of transportation around the world may put upward pressure on global food and commodity prices, as well as shipping costs.
” Paradoxically, a sudden contraction in the global economy might lead to a greater easing of cost and price forces.” “