Standard Chartered: Indonesia's Reduction in Natural Gas Exports May Impact Singapore's Inflation Outlook

(1) Economists at Standard Chartered Group stated in a report that the Monetary Authority of Singapore's latest inflation outlook could be affected by Indonesia's reduction of natural gas exports to Singapore; the reduced volume accounts for less than 2% of Singapore's daily natural gas demand. (2) The Monetary Authority of Singapore expects core inflation to slow more noticeably from mid-2027 onwards, partly because supply-driven imported inflation is expected to ease. (3) However, economists say that this slowdown has become less certain: if the Middle East conflict persists for an extended period, global fuel prices may remain elevated, and regional producers are increasingly prioritizing domestic demand. (4) Earlier this month, the Monetary Authority of Singapore estimated that the average core inflation rate would be 1.5%–2.0% in 2026 and 1.5%–2.5% in 2027.