Average inflation rate for 2023 projected at 2.8% as headline inflation to continue downtrend

by RUPINDER SINGH / pic TMR

UOB Global Economics & Markets Research expects an average inflation rate of 2.8% for the entire year of 2023 after headline inflation for the country eased to a six-month low of 3.8% in December 2022.

“In the absence of domestic policy changes for price-administered items, particularly fuels and utilities, we expect headline inflation to continue its downward trend towards year-end.

“This will result in an average inflation rate of 2.8% for the entire year of 2023 (Ministry of Finance [MoF] estimate: 2.8%-3.3%),” said the research house.