MAS could tighten monetary policy in April after ‘sticky’ inflation data in December: economists

WHILE Singapore’s inflation appears to have peaked in the second half of 2022, some economists are still expecting the central bank to remain hawkish at the next monetary policy review, owing to the “stickiness” in Singapore’s core inflation.

Headline inflation dipped slightly to 6.5 per cent year on year in December, from 6.7 per cent in the previous month, as price increases for private transport moderated, data from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) showed on Wednesday (Jan 25).

But core inflation, which excludes accommodation and private transport, remained at 5.1 per cent year on year in December for the third straight month after peaking in the third quarter.