SINGAPORE (Reuters) – Singapore’s headline and core inflation rate likely eased in June, a Reuters poll showed on Friday, amid more economists raising their bets on a monetary policy easing in October.
Singapore’s consumer price index in June probably rose 0.7% from a year earlier, slowing from the 0.9% rise in May, while core inflation is expected to rise 1.2% from the year earlier, slowing slightly from the 1.3% rate in May, the poll of 11 economists showed.
“Given the sharp slowing in economic growth over the first half of this year, inflation pressures should continue to ease,” said ANZ bank economist Khoon Goh in a note on Friday.
Singapore’s economy grew at its slowest annual pace in a decade in the second quarter, preliminary data showed last week, raising bets that a technical recession and monetary policy easing could be just around the corner.
Core inflation is the Monetary Authority of Singapore’s (MAS) preferred price gauge in setting monetary policy.
The central bank’s core inflation measure excludes changes in the price of cars and accommodation, which are influenced more by government policies.
In a Reuters poll done after the release of the second-quarter data, seven of 11 economists said they expected the MAS to loosen its exchange-rate monetary policy in its next policy statement, due in October, with the other four forecasting no change.
Since then, two additional economists have called for a monetary easing amid a dim economic outlook.
“We now recommend positioning for a weaker Singapore dollar,” Goh said.
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