Singapore: Core inflation continues to moderate – ANZ

Khoon Goh, analyst at ANZ, notes that Singapore’s CPI All-Items inflation for June eased to 0.6% y/y from 0.9% the previous month and was below market expectations, though it was in line with our forecast.

Key Quotes

“The MAS Core Inflation edged down to 1.2% y/y, continuing the moderation seen since its recent peak in December 2018 at 1.9%.”

“Given the weak growth backdrop and downside risks to the outlook, there is unlikely to be much inflation pressure.”

“MAS has maintained their core inflation forecast for 2019 at the mid-point of the 1-2% range. We see core inflation coming in at the lower end of that range.”

“We see MAS easing monetary policy at their scheduled October review, though an earlier move cannot be ruled out.”