RHB Bank has adjusted its inflation projections for Singapore in 2025, anticipating a decrease in both headline and core inflation rates. The bank now expects the full-year headline inflation to be 1.6%, down from its previous estimate of 2.3%, and core inflation to be 1.1%, revised from 1.8%. This adjustment comes amidst a resilient economic outlook and moderate inflationary pressures, suggesting that the Monetary Authority of Singapore (MAS) is likely to maintain its current policy settings in the upcoming Monetary Policy Committee meeting in April.
In February, Singapore’s Consumer Price Index (CPI) eased to 0.9% year-on-year, a slight decrease from 1.2% in January. This figure was marginally below RHB’s and Bloomberg’s forecasts of 1.0% year-on-year. Core inflation also saw a reduction, dropping to 0.6% year-on-year from 0.8% in January.
Barnabas Gan, Acting Group Chief Economist and Head of Market Research at RHB Bank, highlighted these findings in the bank’s latest Global Economics and Market Strategy Report. The report underscores the expectation that Singapore’s inflationary environment will remain stable, allowing MAS to keep its current monetary policy stance.
The revised outlook reflects a cautious optimism about Singapore’s economic resilience, with inflationary pressures appearing to be under control. This stability could provide a conducive environment for continued economic growth in the region.
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