Singapore’s economy gloomy on March Inflation data

The Singapore economy grew a disappointing 1.5 per cent in the last three months of 2014, according to advance estimates released by the Ministry of Trade and Industry. But during the first months of 2015 the economy has been showing signs of moderation.

And it is evidenced predominantly by various macro-economic indications such as the expectation of inflation to be declined to -0.5% yoy basis versus the higher -0.3% recorded in February as Singapore releases March inflation numbers on 23 April. The same is likely to decrease -0.1% on a seasonally adjusted m/m basis.

It is understood that Singapore's present path of marginal move of inflation is temporary as there has neither any major smell in economic situations nor a dramatic political moves. The current shift in inflation is mere a reflection of nominal aspects. Housing rates are expected to drag down headline inflation, as decreases in housing prices weighed on the rental market. Road transport inflation was also likely dragged down by a sharper correction in ownership premiums on motor vehicles. On the contrary, the petrol duties were imposed in February that is likely to support core inflation. Deflationary forces dissipate the economical progresses if the current inflation situations prevail.