Headline inflation was up 5.5% year-on-year in March, compared with a 5.6% increase seen in a Reuters poll. Lee Ju Ye, an economist at Maybank Investment Banking Group, said the slowing was much about last year's high base from the conflict in Ukraine and its impact on food and energy prices. "Accommodation costs seem to be peaking...while food and private transport costs will likely continue to ease from last year's," she said.
"We expect both headline and core inflation to gradually ease and do not expect MAS to further move in October."
The MAS left its monetary policy settings unchanged in its
review earlier this month, reflecting the concerns about its
growth outlook and surprising economists, who had expected
another round of tightening on elevated inflation.
It has also said core inflation will remain elevated in the
next few months but should progressively ease in the second half
of 2023 and end the year significantly lower.
The central bank said core inflation was expected to average
3.5% to 4.5%, and headline inflation was forecast to come in
higher at 5.5% to 6.5% this year.
(Reporting by Chen Lin; Editing by Kanupriya Kapoor)
