- Singaporean headline inflation increased to 3.4% in February, from 2.9%, on festive demand…
- …But, with goods disinflation well-behaved and one-off increases factored in, inflation is likely to fall.
- In Malaysia, new water tariffs caused headline inflation to rise in February, to 1.8% from 1.5%.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Lunar New Year demand boosts headline CPI in Singapore
New tariff adjustment mechanism pushes up utilities inflation in Malaysia
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Anticipated hike to electricity tariffs spooks the CBC into a surprise hike.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In an unexpected move, the Taiwanese central bank raised its discount rate to 2.000% yesterday…
- …Its main worry appears to be the impending rise in electricity tariffs, likely to come in April.
- The improving economic outlook has given the CBC space, but this hike is likely 'one -and- done'.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Malaysian export growth slumps in February on seasonal effects
Singapore's February exports hide continued recovery in electronics
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Singaporean exports fell into the red in February; blame Lunar New Year seasonal distortions...
- ...Export growth will likely resume its recovery path, albeit at a more gradual pace for most of H1.
- Malaysian export growth slowed in February, dragged down by a sharp drop in re-exports.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Indonesian exports disappointed greatly in February, with demand from China faltering again.
- The trade surplus has plunged to a four-year low; consensus for the 2024 current account is too rosy.
- We see Vietnam’s Q1 GDP print falling well short ofexpectations, at 5.4%, down from 6.7% in Q4.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
In one line: Seasonal effects aside, the export growth outlook remains positive.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Taiwanese export growth tanked in February on the Lunar New Year lull and weak Chinese demand...
- …While ASEAN’s status as an export destination improved, benefiting from firms’ China+1 strategy.
- Existing labour-market tightness should make further services disinflation a lengthy process.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Seasonal impact from the Lunar New Year results in a jump to services inflation.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Ringgit weakness worries BNM, but its opting for non-rate measures.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Seasonal effects aside, Singaporean consumer demand remains healthy
Outright deflation in Thailand should be over in a few months
The favourable January food price drag in the Philippines is unwinding partially
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Consumer demand in Singapore remains healthy, despite the Lunar New Year hit to Jan. retail sales.
- The rebound in Philippine food inflation won’t last, but it pushes back the likely first rate cut to June.
- Deflation in Thailand has finally turned a corner; expect to see a muted return to the black in Q2.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
Singaporean inflation is likely to pick up in February but overall disinflationary path is intact
Malaysian core inflation continues to moderate in Janaury
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- The sharp drop in Singaporean inflation, to 2.9% from 3.7%, comes as no surprise to us…
- … As a combination of friendly base effects, lower COE prices and rebates drags on the headline.
- Malaysian core disinflation is likely to continue as lab our-market tightness unwinds.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- The MAS maintained the appreciative slope of its S$NEER policy band at its January meeting...
- ...As it reiterated the current elevated core inflation outlook, while downplaying growth concerns.
- We see the MAS digging in to rein in core inflation, maintaining the policy band for the rest of 2024.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- In one line: Banking on the recovery in the electrical and electronics sector.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- The BNM remained on hold at its January meeting, keeping its policy rate at 3.00%...
- ...Even though core and headline inflation are falling; significant uncertainty surrounds the outlook.
- The pace and strength of the recovery in export growth should determine the BNM’s next move .
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
- Singaporean inflation picked up unexpectedly in December to 3.7%, from 3.6% in November...
- ...As a rise in transport and services inflation offset the impact from continued food disinflation.
- With inflation uncomfortably high, while the growth outlook remains weak, the MAS is likely to hold.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia