Economists see monetary policy tightening ahead despite easing inflation in October

WHILE inflationary pressures in Singapore unexpectedly cooled in October from the previous month’s 14-year high, the risk of a further round of monetary policy tightening remains, economists said.

OCBC chief economist Selena Ling told The Business Times: “One month of easing inflation does not mean the inflation energy has been vanquished. (We) probably will still see ups and downs in the inflation data, even if the worst may be, hopefully, behind us.”

Concurring, UOB senior economist Alvin Liew said: “While the surprising dip in October inflation is a welcome development, the key point is that the official outlook for prices remains unchanged and inflation risks also remain on the upside, thus rendering no change to our monetary policy outlook.”