VIEW: J.P.Morgan: Core CPI Exp. To Slow, Ltd Need For Oct MAS Move

J.P.Morgan write that “the MAS noted that core inflation is likely to trend higher in the coming months owing to the interaction of prevailing pressures from elevated upstream prices with declining domestic slack in the overall labor market, which would likely increase the passthrough from upstream to final prices, reflected in the rising coefficient of passthrough. However, the MAS pencils in a moderation in core CPI in Q422 on the easing of key commodity prices and supply constraints, broadly in line with our core CPI trajectory. In our view, the risks around the labor market and global commodity prices are broadly balanced and as such, an October move is unlikely.”