OUTLOOK
According to MTI and MAS, core inflation is anticipated to mild further over the coming months as imported costs remain low compared to year-ago levels and the present tightness in the domestic labor market eases.
Core inflation should” resume a broadly moderating trend over 2024 ,” the authorities said, adding that it is” expected to be impacted by the( one percentage point ) increase in the GST rate as well as seasonal effects.”
Headline inflation is anticipated to total around 5 % for 2023 as a whole, while core cpi anticipates an average of about 4 %.
Headline and core inflation are expected to average between 3 % to 4 % and 2.5 percent to 3.5 %, respectively, in 2024.
Article and main prices are anticipated to increase by 2.5 percent to 3.5 percent and 1.5 per share to 2.5 %, both, excluding the temporary effects of the one percentage point increase in GST.
Despite some regular uncertainty from power and fuel prices, MTI and MAS predicted that Singapore’s core prices would drop to between 2.5 percent and 3.0 percent year over year by December.
While crude oil prices have increased recently, the majority of food and supplies, as well as intermediate and finished manufactured goods, have maintained their average global prices.
The stronger trade-weighted exchange rate of the Singapore dollars may also help to reduce Singapore’s transfer cost pressures in the upcoming quarters.
Due to higher Certificates of Entitlement ( COE ) and nbsp premiums, domestically, overall inflation is likely to increase further in the upcoming months. As prices for all car groups reached new highs on October 18, the premium for Category B crossed the Sulfur$ 150, 000 ( US$ 109, 500 ) mark for the first time.
However, MTI and MAS stated that” private transport inflation should gradually moderate over the course & nbsp, of next year alongside an anticipated increase in COE quotas.” & nbsp,
From November this year to January 2024, there will be more Offerings available, with the overall limit increasing by 13 %.
As the source of finished housing units rises, accommodation prices is also anticipated to decrease.
According to MTI and MAS,” bottom risks still exist, such as new shocks to global energy and food commodity prices as a result of political conflicts and unfavorable weather events, as well as more persistent tightness than anticipated in the domestic labor market.”
A sharper-than-anticipated decline in the world economy, which could result in a greater easing of cost and price stresses, is one of the downside risks.