UOB Group’s Senior Economist Alvin Liew and Associate Economist Jester Koh review the latest inflation figures in Singapore.
Key Takeaways
Singapore’s headline CPI inflation edged lower to 4.0% y/y (0.9% m/m) in Aug from 4.1% y/y (-0.2% m/m) in Jul, with the y/y print in-line with Bloomberg consensus but lower than UOB’s estimate of 4.3% y/y.
Core inflation (which excludes private transport and accommodation) moderated to 3.4% y/y (0.1% m/m) in Aug, from 3.8% y/y (0.2% m/m) in Jul, with the y/y reading below Bloomberg consensus of 3.5% y/y and UOB’s forecast of 3.6% y/y.
Our Inflation Outlook – We maintain our 2023 headline inflation forecast at 4.7% and core inflation forecast at 4.0%. Excluding the effects of the GST increase, we expect headline inflation to average 3.7% and core inflation to average 3.0% in 2023, both still above the “standard” 2% objective. Risks to inflation remain on the upside given the recent food supply shocks on climate-related events and export restrictions and levies imposed by India as well as the recent surge in global oil prices.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.