INFLATION FORECAST AT 1% FOR 2017
Inflation for the year is expected to come in at 1 per cent, unchanged from the analysts’ forecast in the previous survey. For the first quarter of this year, inflation is expected to be 0.8 per cent.
Core inflation – which excludes accommodation and car prices – is expected to be 1.5 per cent for the whole year, slightly above the 1.3 per cent predicted in the previous survey. It is also predicted to come in at 1.3 per cent for the first quarter.
For 2018, headline inflation is expected to be 1.3 per cent while MAS core inflation is forecast at 1.7 per cent.
So economists don’t think that that the hike will cause inflation, something the cybernuts are screaming their heads out over.
Maybe the economists are relying on the assurance of a junior minister that
the cost of goods, such as coffee and tea, “should not and ought not go up” when participants addressed the trickle-down effect that the water price increase.