Deutsche Bank analysts say Singapore core inflation is forecast at 2.0–2.5% YoY over the next 12 months, above the MAS's informal sub-2% target, which could prompt the central bank to allow further Singapore dollar appreciation. Deutsche Bank expects MAS at Wednesday's monetary policy meeting to modestly steepen the appreciation slope of the S$NEER policy band to curb inflation. Analysts note Q4 electricity prices are expected to fall about 10% QoQ, partly easing pressure, but rising food prices

Deutsche Bank analysts say Singapore core inflation is forecast at 2.0–2.5% YoY over the next 12 months, above the MAS's informal sub-2% target, which could prompt the central bank to allow further Singapore dollar appreciation. Deutsche Bank expects MAS at Wednesday's monetary policy meeting to modestly steepen the appreciation slope of the S$NEER policy band to curb inflation. Analysts note Q4 electricity prices are expected to fall about 10% QoQ, partly easing pressure, but rising food prices and stronger goods-to-services pass-through should keep overall price pressures elevated.