Singapore Core inflation in July 2.5% y/y, lowest in two years By Reuters

SINGAPORE (Reuters) – Singapore’s key consumer price gauge rose 2.5 percent in July from a year earlier, the slowest increase since February 2022, official data showed on Friday.

The core inflation rate – which excludes private road transport and accommodation costs – was lower than a 2.9% forecast in a Reuters poll and compared with 2.9% seen in June.

It was the smallest annual increase in the core price index since February 2022, when it rose 2.2%.

Headline inflation in February rose 2.4 percent from the same month last year, lower than the survey forecast of 2.5 percent. It was the lowest headline inflation rate since August 2021.

Inflation in the Asian financial hub has eased from a peak of 5.5% at the start of 2023, but fell just below 3% in June.

The Monetary Authority of Singapore expects core inflation to decline more significantly in the final quarter of this year. She forecast core inflation at 2.5% to 3.5% this year.

Last week, the Commerce Ministry adjusted its 2024 GDP growth forecast range to 2.0% to 3.0%, from 1.0% to 3.0% previously, after the economy posted a stronger than expected growth in the second quarter.