MAS sees core inflation close to 2% this year

SINGAPORE - Singapore's central bank said on Thursday it expects core inflation to be close to 2 per cent in 2013, within its target range of 1.5 to 2.5 per cent.

Ong Chong Tee, deputy managing director of the Monetary Authority of Singapore, said he expects core inflation to be "edging towards 2 per cent."

Core inflation will be affected by the restructuring of the economy, which could affect supply factors such as wages, he said. Headline inflation will ease largely because of lower car prices, he said.

Singapore's core inflation - which does not include car prices and housing rent, factors that are influenced by government policies - averaged 1.6 per cent in the January to March period.