Prices likely to rise in 3Q23

According to experts, Singapore’s inflation momentum will moderate in the second half of the year. However, prices may increase in the third quarter.

Singapore’s inflation is dependent on global and import prices which have contracted on a YoY basis for five consecutive months.

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Domestic factions such as the quota increase for Certificate of Entitlement and the housing unit supply are expected to cap rental, private transport costs, and accommodation for 2023. Additionally, inflation will also moderate due to the prices of energy and food being lower than the 2022 highs.

MayBank forecasts 2023 headline and core inflation to be 5.1% and 4.3%, respectively.

Barnabas Gan, RHB’s senior economist, cited three reasons why prices may increase in 3Q23 which are improving global dynamics, potentially higher agricultural prices, and recent moves to cut oil supplies by Russia and OPEC.

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