Singapore inflation predicted to average 2.8% this year

What could be the reasons behind this forecast?

According to Nomura, inflation was stubbornly high during the 2010-12 period, at an average of 4.2% y-o-y, even as growth slowed from a record high of 14.5% to just 1.3% in 2012. 

Domestic factors, underpinned by soaring property and private transportation prices, were the key reasons why, said Nomura.

Here's more from Nomura:

In response, the MAS introduced a series of successful macroprudential measures in those areas, which resulted in inflation averaging below 2.0% since April this year.

We expect inflation to average 2.8% this year, which is well below the 4.2% high mentioned above. This is mainly because we do not expect the macroprudential measures to be lifted any time soon.