RHB Bank has projected Singapore’s headline inflation to remain at 2.3% for the full year of 2025, according to its latest Global Economics and Market Strategy Report. The report, attributed to Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank, also forecasts core inflation to ease to 1.8% in the same period.
The report highlights that Singapore’s headline Consumer Price Index (CPI) stood at 1.6% year-on-year, consistent with the previous month and surpassing market expectations of 1.5%. Core inflation, which excludes the costs of accommodation and private road transport, eased to 1.8% year-on-year from 1.9% in November, marking the lowest level in three years.
RHB maintains its base case view that the Monetary Authority of Singapore (MAS) will keep its policy parameters unchanged in its upcoming meeting on 24 January 2025. This suggests a stable economic outlook amidst global uncertainties.
Barnabas Gan noted, “We keep Singapore’s full-year headline inflation at 2.3% and core inflation to ease at 1.8% in 2025.” This outlook reflects a cautious optimism in Singapore’s economic stability and inflation management.
The report’s findings are crucial for policymakers and investors as they navigate the economic landscape in 2025. With inflation rates stabilising, Singapore’s economic environment remains conducive for growth, provided external factors remain favourable.
