Headline Inflation Declines to Lowest Rate Since September 2021, Core Inflation Follows Suit
Singapore’s inflation showed signs of easing in March 2024, with both headline and core inflation falling more than expected, according to data from the Department of Statistics. Headline inflation dropped to 2.7 per cent year-on-year (yoy), significantly lower than 3.4 per cent in February, and well below the 3.1 per cent median forecast by economists. This represents the lowest headline inflation rate since September 2021, when it was 2.5 per cent.
The decline in inflation was largely attributed to a fall in private transport costs and a reduction in core inflation. Core inflation, which excludes accommodation and private transport, dropped to 3.1 per cent, down from 3.6 per cent in February, also surpassing economists’ estimates of 3.5 per cent. This decrease was primarily driven by lower prices for food and services.
On a month-on-month basis, the overall consumer price index (CPI) decreased by 0.1 per cent in March, while core CPI fell by 0.2 per cent. Despite these lower-than-expected figures, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) maintained their full-year inflation forecasts, suggesting that inflationary pressures could persist, though at a more moderated pace. MAS also chose to keep its monetary policy unchanged in April, marking the fourth consecutive meeting of a pause in policy adjustments.
