CNA MAS raises inflation forecast on back of rising wages and labour costs

The Monetary Authority of Singapore has raised its 2026 inflation forecast to one to two per cent to reflect rising wages and stronger domestic demand. Still, it has kept monetary policy settings unchanged for the third straight review, citing economic resilience supported by AI-driven growth. Meanwhile, hiring is expected to be more cautious in the first quarter of this year, with a slight dip in the proportion of firms planning to hire in the next three months. This is according to the Manpower Ministry’s advance labour estimates. CNA speaks to Barnabas Gan, Group Chief Economist at RHB Bank.

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