Expect mild inflation, subdued wages, says MAS

(Oct 27): Singaporeans should get used to mild inflation and scant wage gains for at least the next several months, according to the Monetary Authority of Singapore.

A stable outlook for global commodity prices, somewhat subdued consumer sentiment, and lingering labour-market slack will probably hold down inflation pressures, the MAS projected in its twice-yearly review of macroeconomic trends released Friday. Unemployment, too, should remain somewhat stable with the pace of economic growth seen slowing marginally next year.

“The Singapore economy will likely see slightly moderating, albeit more balanced growth, next year,” the MAS said. “The level of output is expected to remain close to potential and over the medium term, core inflation is expected to trend towards, but average slightly below, 2%.”

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