Singapore inflation probably remained benign in May

Singapore will release May inflation data on 23 June. Inflation is expected to have remained at -0.5% y/y for a second consecutive month on a favourable base effect. 

Inflation will likely remain dragged down by housing inflation; housing and utilities inflation subtracted 1ppt from headline inflation in April. However, it may have been somewhat supported by a rebound in motor vehicle ownership permit prices, which likely pushed up transport inflation. 

"We expect inflation to remain benign at 0.1% in 2015, compared to 1.0% in 2014. This is within the government's forecast range of -0.5% to 0.5%",said Standard Chartered in a report on Monday.