Singapore Inflation Eases To 4-year Low

(RTTNews) - Singapore's consumer price inflation softened further in February to the lowest level in four years, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Monday.

The consumer price index rose 0.9 percent on a yearly basis in February, slower than the 1.2 percent increase in January. Meanwhile, economists had expected inflation to ease to 1.0 percent.

Further, this was the lowest inflation since February 2021, when prices had risen 0.7 percent.

Data showed that core inflation also moderated to 0.6 percent in February from 0.8 percent a month ago, driven by lower inflation across all broad core CPI categories other than retail and other goods.

The slowdown in overall inflation is a moderation in private transport inflation, in addition to the fall in core inflation, the MAS said.

Private transport inflation eased to 1.6 percent from 2.8 percent due to smaller increases in car and petrol prices.

Similarly, food inflation moderated to 1.0 percent from 1.5 percent, and inflation based on services eased somewhat to 0.8 percent from 1.0 percent amid lower airfares and a steeper decline in holiday expenses.

On the other hand, costs for electricity and gas prices dropped at a faster pace of 3.1 percent annually versus a 2.9 percent fall in January. Prices for retail and other goods were 0.4 percent less expensive.

Looking ahead, Singapore's imported inflation is expected to remain moderate, reflecting favorable supply projections in key food commodity markets and forecasts of declines in global oil prices, the MAS said.

On the domestic front, unit labor costs are projected to rise gradually as nominal wage growth continued to ease and productivity increases.

MAS Core Inflation is projected to average 1.0-2.0 percent in 2025. Meanwhile, CPI-All Items inflation is expected to average 1.5-2.5 percent for the year, reflecting an anticipated pickup in private transport inflation.