Singaporean consumer price inflation data for the month of December is set to release tomorrow. According to a DBS Bank research report, the headline inflation is expected to have remained stable but up marginally to 0.7 percent year-on-year.
Apart from a weak external inflationary environment, domestic price pressure has been exceptionally soft in the midst of a still sluggish growth outlook. Furthermore, the Open Electricity Market reform has been successful in cutting electricity tariffs, and the impact of this policy change still lingers. However, inflation should be accelerated in the months ahead as the OEM impact wanes.
“The headline number should start to inch towards the 1 percent mark in the coming months. Full year inflation is expected to register 1.1 percent”, added DBS Bank.
