Singapore inflation rate forecast for 2014 trimmed down to 2.3%

Due to Jan-Feb's lower figures.

According to Maybank Kim Eng, in view of the deceleration in inflation rate in Jan-Feb 2014 to +0.9% (2013: +2.4%), it has revised downward its 2014 inflation rate forecast to +2.3% (+3.5% previously).

Here's more:

Nonetheless, our full-year forecast implies moderate upward inflationary pressures going forward in view of the expected persistent tight labour market situation as per the sustained sub-2% jobless rate, ageing population and the pressures on living and business costs.

The higher business costs are also associated with rising rental costs for industrial space as demand continues to rise. Local employment also rose more quickly amid tightened foreign manpower measures and as hiring costs increase, businesses may pass through the costs to consumers to offset the increase in input costs.