By Romesh Navaratnarajah:

Singapore’s headline inflation of four percent year-on-year in July is expected to ease further in the second half of 2012 on the back of lower housing and accommodation costs, according to Nomura Economic Research.

In a Singapore Business Review report, Nomura noted that the headline consumer price index (CPI) fell to four percent year-on-year in July from five percent in June.

Additionally, core inflation which is an important determinant to the monetary policy of the Monetary Authority of Singapore (MAS), slipped from 2.7 percent year-on-year to 2.4.

As such, Nomura sees a 55 percent likelihood that MAS will keep its policy stance in October.


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