Singapore: Inflation edged lower in August – UOB

Pablo Piovano FXStreet

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.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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