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SINGAPORE: Singapore’s core inflation rose to 3.3 per cent year-on-year in October, official data showed on Thursday (Nov 23).
The increase was due to higher inflation for services, retail and other goods, as well as an increase in electricity and gas costs, the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) said.
Core inflation had risen to 5.5 per cent in January and February this year, a 14-year high, before trending downwards in the following months.
Singapore’s core inflation fell to 3 per cent in September, the lowest since March 2022.
Core inflation excludes accommodation and private transport costs.
Overall inflation rose to 4.7 per cent on a year-on-year basis in October, an increase from 4.1 per cent in the previous month.
The increase reflected higher private transport inflation, in addition to the rise in core inflation, said MTI and MAS.
OUTLOOK
Core inflation is projected to fall to between 2.5 per cent and 3 per cent year-on-year by December.
In early 2024, core inflation is expected to be impacted by the Goods and Services Tax (GST) rate increase and seasonal effects.
“However, core inflation should resume a broadly moderating trend over the course of 2024, as import cost pressures decline and tightness in the domestic labour market continues to ease,” said MTI and MAS.
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