Home Capital Broker's Calls

High inflation could benefit healthcare industry based on historical trends: DBS

Bryan Wu
Bryan Wu8/18/2022 02:43 PM GMT+08  • 3 min read
High inflation could benefit healthcare industry based on historical trends: DBS
Larger cap healthcare players such as Raffles Medical have displayed a trend of strong positive correlation during primary periods of high inflation
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Healthcare is a “beneficiary” during periods of high inflation, says DBS Research analyst Rachel Tan in her healthcare industry report dated Aug 16.

Given the global supply disruptions and ongoing geopolitical tensions, Singapore’s consumer price index (CPI) spiked from 2.29% in 2021 to 6.7% in June 2022 — a level not seen in “a long while”, she says.

Although the healthcare industry is not spared from a high inflationary environment, especially with labour and higher energy costs, Tan says the pricing power of healthcare service providers could offset the inflationary cost pressures given that demand for healthcare is seen to be price inelastic.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.