Economists expect MAS to stand pat in January review amid easing headline, core inflation

PRIVATE-SECTOR economists expect the Monetary Authority of Singapore (MAS) to keep monetary policy settings unchanged in January, after Singapore’s headline and core inflation both eased in November.

Headline inflation for the month fell to 3.6 per cent on the year, from the 4.7 per cent recorded in October, on account of a fall in private transport prices, data from MAS and the Ministry of Trade and Industry (MTI) showed on Tuesday (Dec 26). November’s print was also lower than the 3.9 per cent median forecast by private-sector economists polled by Bloomberg.

Core inflation, which excludes accommodation and private transport, also inched down to 3.2 per cent, a tick lower than the 3.3 per cent rise recorded the previous month, and in line with economists’ median estimate of 3.2 per cent. This was due to lower inflation for retail and other goods, food as well as electricity and gas, said MTI and MAS.