A slower-than-expected rise in Singapore’s inflation rate could mean disinflation in one of the world’s most expensive cities is here to stay, according to economists.
Data this week showed headline consumer price inflation (CPI) inched up an annual 0.1 percent last month, the slowest pace since 2009 and the fourth consecutive month of mild growth. Meanwhile, core inflation, which excludes housing and transportation, fell to an eight-month low with an annual 1.7 percent rise.
“We think dim prospects for a near-term relaxation of the central bank’s macro prudential measures [in accommodation and private road transport] makes headline disinflation the trend,” said Tim Condon, head of research at ING in a note.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.