Friday, 29 September 2023

We are shifting our daily news to Gutzy.Asia Support us there!

Core inflation forecast dropped to 0.8% due to overall lower prices, says MAS and MTI

MAS Core Inflation eased to 0.8% on a year on year basis in July from one year ago, down from 1.2% in June said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) in a joint statement on 23 August.
According to the release, this is mainly attributed to the decline in prices of retail and other goods, a larger decline in the cost of electricity and gas, and lower services inflation which it says more than offset higher private road transport inflation, as well as a smaller decline in accommodation costs.
The lower core inflation also resulted in the CPI-All items inflation declining by 0.4% in July which followed a previous decline on 0.2% in June from the previous month.
MAS Core Inflation is expected to come in within the lower half of the 1%–2% forecast range in 2019, said the statement. Core inflation is the preferred price gauge for the MAS.
Reuters quoted chief APAC economist at Moody’s Analytics Steven Cochrane as saying, “This is further evidence of the weakened condition of the economy.”
“This will likely raise expectations of monetary policy easing… Particularly as many central banks in the region have already begun to ease monetary policy,” he added.
The statement released by MAS and MTI noted that external sources of inflation for 2019 are “likely to be benign” with global prices for the full year not expected to exceed last year’s average.
Domestically, the statement highlighted that labour market conditions have largely held up, contributing to moderate wage increases and higher unit labour costs.
“However, an acceleration in inflationary pressures is unlikely against the backdrop of slower GDP growth, uncertainties in the global economy, as well as the continuing restraining effects of MAS’ monetary policy tightening in 2018,” it elaborated.
Last week, MAS reduced its GDP growth forecast for 2019 from 1.0% to 0.0%, estimating growth to fall somewhere in the middle. Minister for MTI Mr Chan Chun Sing said on his Facebook that the downgraded growth forecast was due to weaker global growth outlook and a downturn in electronics.
However, the minister put a positive spin on things, saying “We should brace ourselves for the challenges ahead but we need not be overly pessimistic. The fact that we continue to attract good investments reflects the confidence that investors have in our long-term value proposition.”
Reuters reports that the Singapore dollar weakened after this data was released, down 0.2% against the US dollar on the day.

Notify of
Inline Feedbacks
View all comments

Latest posts

Election surprises and certainties: Dissecting Tharman’s presidential win

In the 2023 Presidential Election, Mr. Tharman Shanmugaratnam secured a stunning 70.4% landslide victory, surprising many, including himself. Despite expectations that TKL would win the opposition votes, voters from both camps showed a preference for Tharman's charisma and perceived competency. As Singapore reflects on the outcome, questions arise about the election's fairness and the real implications of Tharman's dominant win.

Volunteer as a Polling and Counting Agent for Singapore’s 2023 Presidential Election

For the upcoming Singapore Presidential Election on 1st September, members of the civil society have spearheaded an initiative to strengthen our democratic fabric. We invite committed individuals to join us as Polling and Counting Agents, standing together for a transparent, fair, and just election. This vote counting exercise, organized by members of civil society, is not specifically in support of Mr Tan Kin Lian, a candidate in the upcoming Presidential Election. It's an exercise in active citizenry. Nonetheless, Mr Tan endorses this initiative, which hinges on his candidacy, championing transparency, and has given permission for the results to be shared publicly.

Reflections from the Centenary: The Legacy of LKY and Singapore’s Future

Gilbert Goh reflects on the LKY centenary event: an inspiring showcase of a leader's global legacy juxtaposed against current challenges, urging Singapore to continue its path of progress.

Lim Tean advocates for Tan Kin Lian: A visionary leader for Singapore’s Presidency

In his speech at Mr Tan Kin Lian's launch of his presidential bid, Mr Lim Tean passionately championed the need for a truly Independent President. Highlighting Mr Tan Kin Lian's unique credentials and genuine concern for the wellbeing of Singaporeans, the Peoples Voice leader emphasized the pressing challenges of rising living costs and job insecurities faced by the public. Mr Lim depicted Mr Tan Kin Lian as a beacon of hope for the nation, advocating for a leader who genuinely understands and represents the people’s aspirations.

Tan Jee Say endorses Tan Kin Lian for President: A courageous, genuine, and humble...

In advocating for a truly representative leader, Tan Jee Say underscored Tan Kin Lian's humility, courage, and genuine dedication. Highlighting the pressing need for restored public trust and effective independence, Tan Jee Say emphasized that Tan Kin Lian, as the 'People's President', would bring back hope to Singaporeans and champion true democracy

Tan Kin Lian’s pledge: Rekindling unity and charting a vigorous future for Singapore

In the press conference to announce his bid for the Singapore presidency, Tan Kin Lian emphasizes safeguarding Singapore's reserves and strengthening public service integrity. Drawing on his 30-year leadership at NTUC Income, he envisions a future with affordable living, accessible housing, and job stability, pledging collaboration with the government for a united nation.

Strengthening Singapore’s political foundations: A call to action by Leong Mun Wai on Singapore’s...

Leong Mun Wai urges Singaporeans to strengthen political checks and balances, emphasizing, 'The best is yet to be for Singapore if we dare to make the right decision in upcoming elections.

Trending posts