2024.01.2305:42:00UTC+00Singapore Inflation Rises Slightly To 3.7%

Singapore's consumer price inflation increased somewhat in December after easing to a more than two-year low in November, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Tuesday.

The consumer price index, or CPI, climbed 3.7 percent year-over-year in December, slightly faster than the 3.6 percent increase in the previous month. In contrast, economists had expected inflation to slow to 3.5 percent.

Data showed that MAS core inflation also rose to 3.3 percent from 3.2 percent amid higher costs for services.

Month-on-month, core consumer prices moved up 0.6 percent in December. The total CPI increased 0.4 percent versus a 0.2 percent drop in the prior month.

Among the main categories, service inflation accelerated to 3.9 percent from 3.5 percent as holiday expenses rose at a faster pace.

Similarly, costs for private transport grew at a faster annual rate of 5.0 percent in December after a 4.2 percent rise in November. The upward trend was attributed to increased prices for cars and gasoline.

At the same time, food inflation softened to 3.7 percent from 4.0 percent.

During the whole year 2023, the average annual rate of core inflation was 4.2 percent, compared to 4.1 percent in 2022. CPI-all items inflation averaged 4.8 percent in 2023, down from 6.1 percent in 2022.

Looking ahead, core inflation is expected to be affected by increases in the GST rate and administrative prices in early 2024, the MAS said.

Nonetheless, with import cost pressures declining and labour market tightness easing, core inflation is set to moderate gradually over the rest of the year.

MAS Core Inflation is projected to average 2.5-3.5 percent in 2024, the report said.

Excluding the transitory effects of the 1 percent point increase in the GST rate to 9 percent, core inflation is expected to come in at 1.5-2.5 percent.