Economists raise full-year headline inflation forecast to 5.5% to 5.9%: survey

Their previous forecast was in the 4.5% to 4.9% range.

Economists and analysts now expect higher full-year inflation, a survey from the Monetary Authority of Singapore (MAS) revealed.

Based on the survey, experts predict 2022 headline inflation to come in between 5.5% to 5.9%. Previously, they expected full-year headline inflation to be in the 4.5% to 4.9% range.

The experts also revised their median forecast for MAS Core Inflation in 2022 to 3.8% from 3.4% previously.

In 2023, economists and analysts believe full-year headline and MAS core inflation will both ease, coming at 3.5% and 3.1%, respectively.

With a higher expected increase in inflation, the experts downgraded their forecast for Singapore’s full-year gross domestic product (GDP).

The respondents said they now expect GDP to expand by 3.5% in 2022, instead of 3.8%.

In 2023, the respondents expect GDP growth to further contract to 2.8%.