Singapore’s consumer inflation grew at a slower pace than expected in October, driven primarily by declines in housing and energy costs, alongside a drop in import prices.
According to official data released on Monday, the Consumer Price Index (CPI) rose 1.4% year-on-year in October, below the projected 1.8%. This moderation was attributed to slower inflation in services, electricity, gas, and other goods.
Core inflation, which excludes private road transport and accommodation costs, came in at 2.1% in October, down from 2.8% in September. The Monetary Authority of Singapore (MAS) noted that easing services inflation has contributed to this trend and is expected to decline further through the rest of 2024.
The MAS also cautioned that a significant global economic downturn could lead to a sharper reduction in cost and price pressures, potentially resulting in lower-than-anticipated domestic inflation.
The MAS anticipates core inflation to hover around 2% through the end of 2024. For the full year 2024, core inflation is forecast to average between 2.5% and 3.0%, before easing further to a range of 1.5% to 2.5% in 2025.
Singapore’s central bank maintained its monetary policy stance during its October meeting, as widely expected, following an economic rebound in the third quarter.
