Negative inflation seen persisting with wider output gap

Singapore

WITH Singapore's output gap - the difference between actual and potential GDP - perceived to be wider than originally expected, ANZ economist Glenn Maguire believes the ongoing environment of negative inflation will stick around for longer.

In an ANZ research note published after the Department of Statistics (DOS) released October's inflation data on Monday, Mr Maguire said: "The near recessionary conditions of the Singapore economy point to a significant output gap and the downward pressure on prices currently being experienced may prove to be firmer and more enduring than previously thought."