Singapore inflation to ease; MAS may stand pat: Barclays

Barclays Capital forecasts Singapore's CPI inflation rate to average 3.9% in 2013 vs 4.6% in 2012, reflecting a high base of comparison and benign food prices.

There will be some volatility in car prices but property prices may stabilize, or even see a mild correction, after seven rounds of property cooling steps by the government, Barclays analyst Joey Chew says in a note.

Despite lower inflation, Barclays expects the Monetary Authority of Singapore to maintain its policy stance as it seeks to guard against imported price pressures that may rise in the second half of the year and contain inflationary expectations.

Also, Barclays says the worst may be over for Singapore's economy, reducing the need to ease monetary policy.