OUTLOOK
Global energy costs have been fairly steady in recent weeks, according to MAS and MTI, remaining on average below the rates of a year ago.
In addition, the costs of Singapore’s imported manufactured goods have been steadily falling in line with the easing of international prices and the slowly rising trade-weighted Singapore money exchange rate.
Domestically, unit labor costs are projected to increase more slowly as a result of a slowing down of minimum wage growth and productivity improvement.
” Correspondingly, service inflation, which has been on an easing pattern, should decrease further over the remainder of 2024″, said MAS and MTI.
Core Inflation is projected to remain below 2 % ( including the GST’s one-time effects ) through the end of 2024.
It is projected to regular 2.5 to 3.0 per cent in 2024 as a whole, before stepping down further to 1.5 to 2.5 per share in 2025.
General inflation is anticipated to increase by about 2.5 percent for the duration of 2024 and by on average 1.5 to 2.5 percent for 2025.
” An expected increase in private transportation prices resulting from the strong demand for cars should be more than offset by lower hospitality and core cpi next year,” according to MAS and MTI.
The specialists added that the risks to the 2025 prices perspective are surprisingly low. Domestically, stronger-than-expected workers business conditions could lead to a slower lowering in labour system price growth.
According to MAS and MTI,” an increase of political conflicts may lead to higher commodity prices and increase imported costs.”
” In contrast, a significant decline in the world economy might result in a greater ease of cost and price pressures, leading to lower than anticipated local inflation,” the article states.