Singaporean inflation likely to have remained unchanged at 0.4 pct in January

Singaporean January inflation is expected to have stayed unchanged. According to a DBS Bank research report, the consumer price inflation is likely to have remained at 0.4 percent year-on-year. Notwithstanding the festive season impact on food prices, overall inflation is greatly weighed down by past policy impacts, subdued rental, and a weak labor market.

Indeed, it seems that F&B retailers have exercised restraint in their pricing behavior because of that, stated DBS Bank. Significantly, such sluggish inflation trajectory is perhaps the main reason why the central bank is in no hurry to return to an appreciation stance.

“However, this could change in the coming months if slack in the labor market dissipates, prompting a pickup in demand-pull inflation”, added DBS Bank.

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