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Singapore\u2019s imported cost pressures are expected to pick up and broaden in the months ahead, said MAS and MTI.<\/p>\n
“As higher energy and other input costs arising from the developments in the Middle East pass through global supply chains, they will raise production and transport costs for a wide range of Singapore\u2019s imported goods and services.<\/p>\n
“On the domestic front, services unit labour costs are likely to grow at a slower pace this year as nominal wage growth eases from the firm levels last year. Meanwhile, domestic consumer spending could turn more cautious amid rising economic uncertainty,” said the authorities.<\/p>\n
MAS and MTI noted that core and overall inflation are currently projected to average 1.5-2.5 per cent in 2026, adding that the risks to the inflation outlook are “tilted to the upside”.<\/p>\n
“A more persistent disruption to global energy supplies or shortages in key intermediate inputs to regional supply chains could further raise imported costs for Singapore,” said the authorities.<\/p>\n
“However, downside risks are also present. A curtailment of industrial production due to supply chain disruptions or an abrupt tightening in global financial conditions could lead to a slowdown in economic activity and thus lower inflation.”<\/p>\n<\/div>\n