OUTLOOK
The forecast for Singapore’s core inflation this year remains at between 1 per cent to 2 per cent.
Overall inflation is expected to average between 1.5 per cent to 2.5 per cent for the year, reflecting an anticipated pickup in private transport.
“Singapore’s imported inflation is expected to remain moderate, reflecting favourable supply projections for key food commodity markets and forecasts of a decline in global oil prices,” said MAS and MTI.
“While an escalation of trade frictions could be inflationary for some economies, their impact on Singapore’s import prices is likely to be offset by the disinflationary drags exerted by weaker global demand.”
On the domestic front, the authorities said unit labour costs were projected to rise gradually as nominal wage growth continues to ease, while productivity increases.
“At the same time, enhanced government subsidies for essential services such as public healthcare, preschool education and public transport will continue to dampen services inflation,” they added.
