Singapore’s Inflation Hit 3.3% In October, Up From 3.2%

(CTN News) – Official data released on Thursday revealed that Singapore’s Inflation primary consumer price index surged by 3.3% in October on a yearly basis, surpassing the predictions of economists.

The core inflation rate, which excludes private road transport and accommodation expenses, was slightly higher than the 3% forecast by a Reuters poll of economists.

In comparison to September’s 3%, the core rate increased slightly, but it was still lower than the peak of 5.5% in January and February. Headline inflation in October was 4.7%, higher than economists’ forecast of 4.45% and the previous month’s 4.1%.

The government attributed the rise in core inflation to higher prices for services, retail, and other goods, as well as an increase in electricity and gas costs.
The Monetary Authority of Singapore and the trade ministry have issued a joint press release stating that core inflation is expected to decrease to a range of 2.5-3% year-on-year by the following month.

They also mentioned that there will be an impact on core early next year due to a planned 1-percentage-point consumption tax hike.

However, the press release mentioned that core inflation is anticipated to moderate throughout 2024 gradually. This is attributed to the decline in import cost pressures and the easing of tightness in the domestic labor market.

In the previous month, the central bank decided to maintain its monetary policy settings but made a change in the frequency of policy reviews.

These reviews will now be conducted on a quarterly basis instead of semi-annually week, government data revealed that Singapore’s economy experienced a faster growth rate than previously estimated in the third quarter.

The resurgence of tourism and service sector activity contributed to a 1.1% year-on-year increase in gross domestic product, surpassing the initial estimate of 0.7% released last month.

However, authorities cautioned about potential risks stemming from inflation and geopolitics.

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