Accommodation, transport prices to stay high in H1 23: analyst

This despite the softening inflation.

Although cost pressures are softening, accommodation and transport prices will likely increase in the first half of 2023, CGS-CIMB said.

The GST hike and a slowdown in retail sales are expected to negatively impact growth, the analyst said in a brokerage report. The forecast for CPI growth in 2023 is 4.5% and GDP growth is 2.0%.

The central bank reported that core inflation grew 5.1% year-over-year (YoY) and headline inflation grew 6.5% YoY. 

This is slightly higher than consensus estimates, and marks a slight decrease from Nov's numbers. 

The manufacturing sector improved, with a contraction of only 3.1% YoY in December, compared to consensus estimates of a 6.9% contraction.