Singaporean headline inflation likely to have remained stable in June

Singaporean June inflation data is set to release tomorrow. According to a DBS Bank research report, the headline consumer price inflation is likely to have remained stable at 0.9 percent year-on-year, unchanged from May’s figures. However, inflation is expected to begin trending higher in the months ahead as the effect from lower COE premium begins to wane.

Moreover, in the months ahead, effect from the energy market reform is also expected to dissipate. In the meantime, core inflation might continue to ease, which highlights the deceleration in growth momentum within the economy and the easing in demand-pull inflationary pressure, said DBS Bank.