UOB lowers full-year inflation forecast amidst disinflation in January

Both core and headline inflation dropped in January.

Singapore's core and headline inflation dropped to 0.8% and 1.2% in January from 1.7% and 1.5% in December 2024, respectively.

Analysts at UOB adjusted its full-year inflation forecast as they expect the disinflation trend to remain intact.

“We lower our core and headline inflation estimates to 1.3% for both in 2025 (from 1.7% for both previously, 2024 core: 2.8%, 2024 headline: 2.4%)," UOB said.

UOB maintains its call for MAS to keep the current S$NEER settings for the rest of 2025 but acknowledges that risks are tilted toward further easing through a reduction in the S$NEER slope if core inflation momentum slows further.

UOB will review its monetary policy call at the next February 2025 CPI release on 24 March.

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