Singapore Inflation Eases To 1.4%, Lowest Since March 2021

(RTTNews) - Singapore's consumer price inflation moderated in October to the lowest level in more than three-and-a-half years, largely due to a moderation in services inflation and utility costs, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Monday.

The consumer price index rose 1.4 percent on a yearly basis in October, slower than the 2.0 percent increase in September. 

Moreover, this was the lowest inflation rate since March 2021, when prices had risen 1.3 percent.

Data showed that core inflation softened to 2.1 percent in October from 2.8 percent in September due to a moderation in services, electricity and gas, retail, and other goods inflation.

Costs for services grew at a slower pace of 2.3 percent from last year versus 3.3 percent in October. The moderation was due to smaller increases in the costs of holiday expenses and healthcare services.

Electricity and gas inflation eased notably to 2.5 percent from 6.3 percent, and accommodation inflation edged lower to 2.5 percent from 2.7 percent. Meanwhile, private transport costs continued to fall by 2.5 percent.

MAS core inflation is expected to stay on a gradual moderating trend and reach around 2 percent by the end of 2024 and is projected to average 2.5-3.0 percent in 2024 as a whole and step down further to 1.5-2.5 percent in 2025, the MAS said.

CPI-All Items inflation is expected to come in at around 2.5 percent for the whole of 2024 and average 1.5-2.5 percent in 2025.

The MAS further added that risks to the inflation outlook are relatively balanced. Domestically, stronger-than-expected labor market conditions could lead to a slower easing in unit labor cost growth.

Rising geopolitical tension may be a concern for higher imported costs, while a significant downturn in the global economy could induce a greater easing of cost and price pressures.