Core Inflation Misses Estimates

Singapore CPI beats headline Y/Y but misses on core. The headline figure was flat Y/Y against expectations for -0.1%, the core figure printed -0.3% against -0.1% expected.

• Private transport costs provided a boost, according to the MAS and MTI the component rose 1.2% in December from -1.3% in November.
• The figure was dragged lower by declines in services costs and lower food inflation while weak consumer spending weighed on the print.
• ANZ says the data are unlikely to materially effect the rate with the MAS expected to be on hold at its April meeting.
• The MAS said predict that inflation is likely to pick up amid the expected recovery in global oil prices in the coming quarters, but noted cost pressures are expected to be subdued as wages and rents stay low.