Some segments of manufacturing have been gaining steam on the back of stronger global growth but the overall outlook for the Singapore economy remains cautious, the Monetary Authority of Singapore (MAS) said.

In its latest biannual Macroeconomic Review, the central bank said growth has improved but is still "volatile and uneven".

The MAS also noted that inflation will continue inching up this year, driven mainly by higher oil prices.

But overall price pressures will remain muted, as economic growth has not picked up across the board and the labour market remains fragile.

SEE TOP OF THE NEWS: MAS cautious about outlook despite pickup