OUTLOOK
MAS and MTI reported that while global energy prices have fluctuated in recent months, they have generally remained below the rates they were a year ago.
” However, in combination with easing international prices and the progressively strengthening trade-weighted S$ trade price, Singapore’s imported manufactured commodities prices have also continued to be on a large drop”.
Domestically, system labour costs are projected to rise more slowly,  , alongside moderating minimum income growth and improving efficiency.
Services prices, which has been on an easing pattern, may gradual further over the remainder of 2024, said the authorities.
According to MAS and MTI, core cpi is projected to be at around 2 % through the end of 2024.
It is projected to ordinary 2.5 to 3 per cent in 2024 as a whole, and move along more to 1.5 to 2.5 per cent in 2025.
Given “firm demand” for cars, inflation in the housing sector is anticipated to decline in the coming year, which should help offset the expected rise in exclusive transportation inflation.
For the entire month of 2024, overall inflation is anticipated to be between 2.5 and 2.5 percent, with an average increase of 1.5 to 2.5 percent.
The prices view has “reasonably balanced risks.” Domestically, stronger-than-expected labour market problems could lead to a slower lowering in product left price growth”, said MAS and MTI.
” Geopolitical tensions does increase product costs and increase import costs,” the authors write. In contrast, a major decline in the world economy might result in a greater ease of the cost and price pressures, leading to lower-than-expected local inflation.