, Singapore

Chart of the Day: Inflation will tread higher to 4% by end-2013

But for the mean time, it will ease.

According to DBS, inflation will certainly ease further. While the authority has temporarily lifted the financing curbs to allow car dealers to clear off their existing stocks that were purchased based on the previous financing terms, and COE premiums have recovered partially, most consumers are expected to stay on the side-lines waiting for car prices and COE premiums to fall further. 

Here's more from DBS:

The market is going through an adjustment period before a new equilibrium can be reached.

That implies slower sales and hence, more easing in car prices in the coming months. Indeed, we expect inflation to ease further towards the 3.0% mark in the middle of the year before inching gradually back to 4% by the end of the year (see Chart).

Wage pressure and still high underlying business cost are expected to keep inflation elevated. But factoring in the effect of the COE premiums on inflation,full year inflation is now expected to average 3.6%, against our earlier projection of 4.0%.

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.