KUALA LUMPUR: AmBank Research has maintained its consumer price index forecast for Singapore at 0.8% for 2018.
The forecast falls within the Monetary Authority of Singapore's range of 0% to 1% with the core inflation at 1.8%, also within the 1% to 2% forecast range of the central bank.
According to AmBank Research's economic report, headline inflation rose 0.2% slower in March on year from 0.5% in February. Core inflation eased to 1.5% on year from 1.7% in February.
Key contributing factors were the weak prices of transport and housing utilities, apart from weaker food prices.
"We think there is some room for inflation to rise moderately as we move ahead, driven by a faster pace of wage growth and pickup in domestic demand. But the upside is limited as retail rents remained subdued and firms’ pricing power constrained by market competition.
"Also, following MAS’ modest to gradual appreciation path in April, the upside pressure from the cost side of the inflation will be gradual owing to the stronger currency which will mitigate import cost".
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