SINGAPORE: “Singapore Core Inflation Holds Steady at 3.1% for Third Month”, Singapore’s core inflation rate remained stable at 3.1% in May, holding steady from the figures reported in both April and March. This consistency suggests a sustained level of price increases excluding the more volatile components like food and energy.
This figure slightly surpasses the 3.0% forecast projected by a Reuters poll of economists, indicating a modest deviation in Singapore’s core inflation rate for May.
According to data from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) released on Monday, Jun 24, an uptick in services inflation was counterbalanced by declines in electricity and gas prices, as well as retail and other goods inflation.
Retail and other goods inflation dipped from 1.6 per cent to 1.5 per cent. MAS and MTI attributed this to a slower pace of increase in prices of personal effects, as well as alcoholic beverages and tobacco.
Services inflation increased slightly – from 3.5 per cent to 3.6 per cent in – on the back of a “larger increase in holiday expenses and a smaller decline in airfares”.
Food inflation remained at 2.8 per cent, reflecting stable food services inflation, even though non-cooked food inflation registered a “modest increase”.
Accommodation inflation eased slightly from 3.5 per cent to 3.4 per cent due to smaller increases in housing rents.
Global prices of energy and most food commodities have remained relatively stable in recent months, said MAS and MTI. The costs of Singapore’s imported intermediate and final manufactured goods have also continued on a broad decline.
Inflation for services associated with overseas travel has remained firm but should moderate further over the course of the year as the air transport and hospitality sectors around the world gradually restore supply.
