Inflation expected to dip further amid weak consumer sentiment, low commodity prices

Inflation has been in the red for five months.

Singapore’s inflation is expected to moderate further in coming months, following five straight months of negative inflation.

According to the Monetary Authority of Singapore, inflation will be dragged by the plunge in global oil prices and the increase in medication subsidies.

“The anticipated moderation in core inflation in 2015 comes on the back of stronger-than-average outturns over the past few years. However, the labour market remains tight and underlying cost pressures could mount and pass through more significantly to consumer prices, especially if economic conditions become more supportive. Along with some pickup in global oil prices and the dissipation of the effects of budgetary measures, inflation is expected to rise going into 2016,” stated the MAS

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