Singapore Inflation Eases To 2.0%, Lowest Since March 2021

(RTTNews) - Singapore's consumer price inflation moderated further in September to the lowest level in three-and-a-half years, mainly driven by a steeper fall in private transport costs, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Wednesday.

The consumer price index rose 2.0 percent on a yearly basis in September, slower than the 2.2 percent stable rate of increase in August. 

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

The slowdown was driven by a fall in private transport prices, which more than offset the increase in core inflation.

Core inflation accelerated slightly to 2.8 percent in September from 2.7 percent in August, due to an upturn in retail and other goods inflation.

Costs for private transport declined at a faster pace of 2.4 percent from last year amid a larger decline in car prices alongside lower petrol prices.

Accommodation inflation moderated to 2.7 percent from 2.9 percent, and food inflation edged lower to 2.6 percent from 2.7 percent. Meanwhile, service inflation remained stable at 3.3 percent.

MAS Core Inflation is expected to stay on a gradual moderating trend and reach around 2 percent by end-2024, 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.