Higher energy prices could be one.
Singapore CPI remained unchanged in March, up 0.7% due to external inflationary pressures amid a turnaround in global energy and commodity prices.
According to RHB, CPI is expected to end the year with a 1.2% growth compared to a -0.5% for the past two years.
RHB said this will be supported by four factors. For starters, the improving economic activities in tandem with ongoing expansion in export demand would likely give CPI a boost.
CPI will also be supported by a low base effect following two years of decline, the higher energy prices, and a small pick-up in consumer sentiment.
"However, the rise is expected to remain subdued, as the property market remains soft and conditions in the labour market have slackened," RHB warns.
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