KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Singapore’s core inflation rose more than expected in October, reversing September’s sharp cooldown and signalling that underlying price pressures may not be easing as quickly as thought.
Core prices—watched closely by the Monetary Authority of Singapore (MAS)—climbed 1.2% year-on-year, up from 0.4% in September, driven by firmer increases in services, food, and retail goods. On a month-on-month basis, core inflation rose 0.5%, the fastest pace in several months.
Headline CPI-All Items also picked up to 1.2% YoY, from 0.7% previously, pushed higher by rising private transport costs and the rebound in core inflation.
What’s Driving the Rebound
• Services inflation strengthened — primarily due to higher health insurance premiums, healthcare costs, and travel-related expenses.
• Food inflation edged higher, lifted by non-cooked food.
• Retail & other goods prices rose, with increases in clothing, footwear, and personal accessories.
• Private transport inflation accelerated as car prices climbed more sharply.
• Electricity & gas saw a slower decline, providing less relief than earlier months.
• Accommodation inflation eased, reflecting moderating rental increases.
MAS Outlook: 2025 Still Mild, 2026 Riskier
Despite the October rebound, policymakers expect inflation to remain manageable next year:
MAS core inflation forecast (2025): around 0.5%
2026 core inflation: 0.5%–1.5%
Headline CPI-All Items (2025): 0.5%–1.0%
Headline CPI-All Items (2026): 0.5%–1.5%
MAS highlighted several risks that could shift the outlook:
• Geopolitical tensions may disrupt supply chains and lift import costs.
• A sharper downturn in global demand could keep core inflation subdued for longer.
• Further drops in oil prices may temporarily cool overall price growth.
Investor Angle
The stronger October reading is unlikely to derail Singapore’s 2025 low-inflation trajectory but reinforces expectations that inflation stabilisation will be uneven. For markets, the data supports:
• A steady MAS policy stance into 1H 2025
• Mild upward pressure on services and food-related equities
• Continued easing in rental-driven sectors
• A more uncertain inflation path heading into 2026, especially if geopolitical risks worsen
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