Chart of the Day: Inflation pickup is not broad-based

Price pressures are driven primarily by supply-side considerations.

The pass-through to more broad-based price pressures does not appear strong, said Standard Chartered.

It also noted that the current rise in inflation is in line with expectations.

Here's more from Standard Chartered:

We believe the MAS has little impetus to change its monetary policy stance, due to the pickup in inflation. The current rise in inflation is in line with its expectations. The central bank forecast in its October MPS that headline inflation should pick up to about 0.5-1.5% in 2017 from -0.5% in 2016, and core inflation to about 1-2% from 1%. The projections remain valid.

In the February CPI inflation report, the central bank maintained its previous inflation projections. More importantly, even though headline deflation ended its 24-month streak in November, price pressures are driven primarily by supply-side considerations. The pass-through to more broad-based price pressures does not appear strong considering a still-subdued growth outlook and soft labour-market conditions.