Singapore’s inflation rates are expected to remain subdued throughout 2025, according to the latest Global Economics and Market Strategy Report by RHB Bank. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, stated that the full-year headline and core inflation rates are projected to be 1.6% and 1.1%, respectively.
The report highlights that the Monetary Authority of Singapore (MAS) is likely to keep its policy parameters unchanged for the year, with a potential easing in the second half of 2025. This stance comes despite March’s Consumer Price Index (CPI) showing a year-on-year increase of 0.9%, which fell short of RHB’s and Bloomberg’s expectations of 1.2% and 1.1%, respectively. Core inflation also dipped slightly to 0.5% year-on-year from 0.6% in February.
Gan’s analysis suggests that the balance of risks leans towards further easing later in the year, reflecting a cautious approach amidst global economic uncertainties. The report underscores the importance of monitoring inflation trends closely, as they have significant implications for economic policy and consumer spending.
As Singapore navigates through 2025, the focus will remain on how these inflationary trends influence broader economic strategies and the potential adjustments by the MAS. The persistence of softer inflation could impact various sectors, shaping the economic landscape in the months ahead.
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