SINGAPORE, March 24 — Singapore’s core inflation fell to 0.6 per cent year-on-year in February, marking a near four-year low, official data showed today.
This was down from 0.8 per cent in January and marked the fifth consecutive decline. The last time core inflation was lower was in March 2021, when it stood at 0.5 per cent, according to a report in Channel News Asia (CNA).
On a month-on-month basis, core inflation, which excludes accommodation and private transport, increased by 0.1 per cent.
Overall inflation eased to 0.9 per cent year-on-year in February from 1.2 per cent in January, driven by a moderation in private transport inflation and the fall in core inflation, according to the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).
The drop in core inflation was attributed to slower price increases across all consumer categories except retail and other goods. Food inflation moderated from 1.5 per cent in January to 1.0 per cent in February, while services inflation eased due to lower airfares and a steeper decline in holiday expenses. Electricity and gas prices also saw a larger drop.
Private transport costs rose at a slower pace, increasing by 1.6 per cent in February compared to 2.8 per cent in January, due to smaller hikes in car and petrol prices. Accommodation inflation remained at 1.6 per cent, with smaller increases in housing rents offset by higher housing maintenance and repair costs.
For 2024, core inflation is projected to be between 1 per cent and 2 per cent, while overall inflation is expected to average between 1.5 per cent and 2.5 per cent.
CNA reported, MAS and MTI said imported inflation is likely to remain moderate, given favourable supply conditions for key food commodities and expected declines in global oil prices.
Domestically, unit labour costs are expected to rise gradually as wage growth eases and productivity improves. Government subsidies for public healthcare, preschool education, and public transport will also help curb services inflation, the authorities said.