Core Inflation Hits 2.5% While Headline Inflation Holds Steady at 2.4% in July
Core inflation in Singapore slowed more than expected in July, while headline inflation maintained the same pace as the previous month, according to data from the Department of Statistics.
Headline inflation remained unchanged at 2.4%, slightly lower than the median forecast of 2.5% by private-sector economists. This was primarily due to increased private transport costs, which were offset by lower accommodation inflation, as noted by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry.
Core inflation, which excludes accommodation and private transport, decreased to 2.5%, down from 2.9% in June and lower than economists’ median estimate of 2.9%. On a month-on-month basis, the overall consumer price index (CPI) fell by 0.3%, while core CPI dropped 0.1%.
In response to the slowing inflation, MAS lowered its full-year headline inflation forecast to a range of 2 to 3 percent, while maintaining its core inflation forecast at 2.5 to 3.5 percent for 2024. Economists predict core inflation may continue to ease throughout the year due to contained imported price pressures and strengthening of the Singapore dollar. Some experts also suggest that core inflation could return to around 2% sooner than anticipated.
