Fluctuations in COE Prices Contribute to Inflationary Pressures in the Coming Months
Singapore’s core inflation rebounded to 3.3% in October, signaling a slight uptick in the cost of living, according to data released by the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI). Despite the rise in core inflation, food inflation eased slightly to 4.1% from the previous month’s 4.3%.
Headline inflation also increased to 4.7% in October, surpassing the 4.1% recorded in September. Economists have warned that price volatility is likely to persist in the coming months, mainly due to fluctuations in the Certificate of Entitlement (COE) prices, which are a significant factor in transportation costs.
The authorities have cautioned that these inflationary pressures could continue, influenced by various domestic and global factors.
