Inflationary pressures won't ease significantly: HSBC

This amidst robust demand conditions and the tightness of labor markets.

HSBC Global Research noted:

Inflation is very much still on the agenda in Singapore. While this was not alarmist, it underscores the persistent inflation pressures in the economy.

Of course, the sequential uptick CPI inflation in May was heavily distorted by the April S&CC rebates. However, annual inflation is holding steady at a relatively high level as food, fuel, and accommodation costs have trended up over the past several months. The high level of prices for these categories are also adding to broader inflation pressures through their second-order impact by way of higher wages, pass-through of higher input costs, etc.

Now, the anticipated soft patch in global trade and spillovers from the tragic events in Japan could help bottle inflation in the near term to the extend it brings down international commodity prices and slows activity in Singapore through the trade channel. However, inflationary pressures are not expected to ease significantly considering the robust demand conditions at home and the tightness of labor markets.

The MAS will, therefore, look beyond the temporary slowdown in activity and not let its guard down on inflation.

Bottom line: CPI inflation in May remained elevated, underscoring the persistent inflation pressures in the economy. The MAS will look beyond the potential near term easing of inflation pressures and not let its guard down on inflation.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia