Inflation is expected to stay mild in 2026. Consumer price inflation Domestically, as economic activity continues to expand and the labour market stabilises, some gradual pick-up in local cost pressures on rentals and wages is possible, though the cost pressures should still be moderate. As significant disruptions to global supply chains by geopolitical developments. Against this backdrop, underlying consumer price inflation in 2026 is forecast at 1.7%, up moderately from 1.1% in 2025. The GDP deflator is forecast to increase by 1.7% in 2026. For reference, the latest forecasts for consumer price inflation in 2026 by private sector analysts averaged 1.7%.
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