Singaporean headline inflation likely to have accelerated slightly in March

Singaporean headline inflation data for the month of March is set to release tomorrow. According to a DBS Bank research report, the consumer price inflation is likely to have reached 0.8 percent on a year-on-year basis. Inflation has persistently surprised on the downside.

Lower global oil prices at the beginning of 2019 and lower electricity tariffs have limited inflation. Going forward, inflation is likely to pick up along the stable rise in oil prices. However, a sharper than expected fall in electricity prices because of the liberalization in the electricity market should tamper domestic price pressure and keep inflation in check.

“We have lowered our inflation forecast to 1.1 percent to reflect such benign inflationary environment. Though inflation will pick up in the coming months, the pace of increase will be modest”, added DBS Bank.