Singapore – Prices may have continued to fall in April

Singapore will announce April inflation numbers on 25 May. The headline number is expected to remain in deflation territory for the sixth consecutive month at -0.3% y/y, similar to the March reading. 

Transport and housing costs likely continued to exert downward price pressure, although the increase in petrol duty is expected to have moderated the negative inflation impact on transport. 

Meanwhile, the rental market remains soft amid higher housing supply and prior property cooling measures. Food remained the main contributor to inflation. 

"We expect core inflation to continue to fall to 0.8% y/y in April versus 1% y/y in March. The overall inflation environment remains benign, in our view"