And transport-related prices probably won’t spike either.
According to a report by BMI, Singapore headline inflation is expected to remain subdued in 2016, amid mild commodity price, monetary aggregate, transport, and housing fundamentals. This will extend Singapore’s deflationary trend that’s lasted over the last 12 months.
BMI forecasts that the deflationary impulse from housing will persist as the gradual rollback of decline in the inflow of skilled foreign labour has impacted demand right when an influx of new units poured into the market. Meanwhile, regulators are adamant on property market cooling measures such as loan-to-valuation ratios and additional buyer’s stamp duties.