Singapore CPI dropped to 4% year on year, lower than the market’s expectation, due to a more moderate increase in costs of accommodation, private road transport and oil-related items.

The Monetary Authority of Singapore (MAS) lowered its forecast for core inflation to 2.5%-3% for the whole year as overall global commodity prices remain below year-ago levels, keeping domestic oil and food inflation contained.

In the past, MAS has been continuing with the policy of modest and gradual appreciation of the Singapore dollar to combat inflation. Given easing inflation and less risk of a technical recession, I think there is an increased possibility that MAS will slow the pace of SGD appreciation at its October meeting.

Below is the historical chart of SGD/USD for the past 2 years.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
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