Singapore’s core inflation eased to its lowest level in 21 months during October, Bloomberg reports, citing government data released Monday.
The core inflation rate, which excludes the volatile costs of housing and private transport, rose by 2.1% year-on-year, significantly lower than the Bloomberg News survey median forecast of 2.5%. This marks the slowest pace since December 2021.
Headline inflation also showed a considerable slowdown, reaching 1.4% year-on-year – the lowest since March 2021 and below the 1.8% median forecast. The non-seasonally adjusted monthly figure even recorded a 0.3% decline. The moderation in inflation is largely attributed to slower price increases in healthcare and recreation.
The Monetary Authority of Singapore (MAS) confirmed that the disinflationary trend is firmly established, although it cautioned about potential upward pressures on prices. The central bank anticipates core inflation to finish the year at around 2% and average near the midpoint of its 1.5-2.5% forecast range in 2025.
The MAS, which employs an exchange-rate based monetary policy rather than interest rate adjustments to manage inflation, will conduct its next policy review at the end of January.
