Singapore’s core inflation accelerated to its fastest pace in seven months in February, official data showed on Monday, as the seasonal impact of the Lunar New Year pushed services and food prices higher. Core inflation, which excludes private road transport and accommodation costs, was 3.6% year-on-year in February, higher than the 3.4% forecast in a Reuters poll of economists and 3.1% in January.
February’s figure was the highest since 3.8% in July 2023, according to London Stock Exchange data. Overall consumer prices rose 3.4% in February from the same month last year, above the 3.3% increase predicted by polls and the 2.9% rise in January. “This was driven by higher services and food inflation, partly reflecting seasonal effects associated with the Lunar New Year,” the Ministry of Trade and the Monetary Authority of Singapore (MAS) said in a statement on Monday. With import cost pressures continuing to fall and domestic labor market tensions easing, core inflation is expected to resume a gradually moderating trend over the remainder of the year. They expect headline and core inflation to average 2.5% to 3.5% in 2024, unchanged from their previous official forecast.
