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UOB analyst Jester Koh has revised Singapore’s 2026 core and headline inflation forecasts upward to 1.5–2.5% due to surging imported energy costs. The Monetary Authority of Singapore (MAS) faces pressure as higher oil and gas prices are expected to trickle into consumer price indices (CPI) through electricity, transportation, and goods. This marks a significant shift from earlier projections, reflecting the global energy crisis’s impact on the region.
For markets, this signals potential tightening of monetary policy as MAS may need to counter inflationary pressures. Traders should monitor energy price trends and subsequent CPI data releases for clues on policy direction. The move also highlights the vulnerability of energy-dependent economies to global commodity shocks.
Investors in the MENA region should note the indirect effects of rising oil prices on trade balances and capital flows. Key watchpoints include MAS’s policy response, global oil price volatility, and cross-asset correlations between energy and equities in emerging markets.
