Economists expect raised inflation forecast, MAS policy tightening in April on war-led cost pressures

[SINGAPORE] Many private-sector economists expect the Monetary Authority of Singapore (MAS) to raise its full-year inflation forecasts and tighten monetary policy in April, after the authorities flagged on Monday (Mar 23) that prices are likely to increase, particularly in the wake of conflict in the Middle East.

In February, core inflation, which excludes accommodation and private transport, accelerated to 1.4 per cent – a 14-month high – from January’s 1 per cent.

This was largely due to higher inflation in services, food, as well as retail and other goods, partly reflecting Chinese New Year-related seasonal effects, MAS and the Ministry of Trade and Industry (MTI) said. The holiday fell in January last year, but in February this year.