Inflation may have reached 4.3% in January 2011: DBS

After the recent upward revision by the MAS in its inflation forecast to 3.0-4.0%, all eyes will be on the inflation reading due today.

According to DBS, a slightly lower reading of 4.3% as compared to 4.6% in the previous month has been penciled into their forecast.

The MAS has pointed out that domestic inflation is largely driven by the high COE prices as well as higher accommodation costs. And that explains its decision to keep its core inflation forecast to 2.0-3.0%.

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