Bank Negara is expected to release the detailed disclosure of international reserves as at end-June 2022 on Friday.
Producer price index
A handful of economic data are due this week including the producer price index (PPI), leading index and coincident index.
Analysts expect the PPI to increase 11% in June from 11.2% in May.
According to Trading Economics global macro models and analysts expectations, the producer price change is expected to be 12%, while the coincident index to be 121.00 points by the end of this quarter.
Meanwhile, Bank Negara is expected to release the detailed disclosure of international reserves as at end-June 2022 on Friday.
Singapore inflation
SINGAPORE and Australia are expected to release their consumer price index (CPI) this week.
UOB Global Economics & Markets Research estimates inflation to expand 6.2% year-on-year (y-o-y) while Bloomberg estimates a growth of 5.8% y-o-y from 5.6% in May.
ING expects Singapore’s headline inflation to accelerate further, settling at 5.9% for the month of June.
It said the potent mix of supply side pressures and resurgent demand are expected to drive prices higher, which should also be reflected in a higher core inflation reading.
Faster inflation could keep the Monetary Authority of Singapore (MAS) on notice with further tightening a possibility, despite several tightening moves by MAS to date.
GDP reports
ING expects South Korea’s second quarter (2Q) gross domestic product (GDP) to decelerate from 1Q.
It said the contribution from net exports likely turned negative while manufacturing activity worsened during the quarter due to supply chain disruptions.
However, ING believes that the reopening of the economy and fiscal support, which began in early June, should partially offset the slowdown.
Bloomberg estimates South Korea’s GDP to expand 2.7% from 3% in 1Q while Taiwan’s GDP to grow 3%-3.5% from 3.14% in 1Q.
ING said Taiwan’s 2Q GDP should also be slower than the first quarter due to logistical disruptions from Mainland China’s lockdowns from March to May.
