Singapore core inflation eases to 3.1% in January

This is expected to pick up in February due to CNY, before continuing downward trend

- Claire Huang

Consumer prices have eased in January on the back of lower services and food inflation, beating analysts' estimates in a surprise development.

But the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) cautioned that core inflation is expected to pick up in February - a warning also given by some analysts.

Official data released on Feb 23 showed that core inflation, which excludes private transport and accommodation costs to better reflect the expenses of households here, came in at 3.1 per cent year on year in January, lower than the 3.6 per cent forecast in a Reuters poll of economists.

The easing came despite the rise in goods and services tax (GST) to 9 per cent in January 2024 from 8 per cent in December 2023.

The January figure, led by a slower rise in prices of services and food, is slightly lower than the 3.3 per cent in December, the level at which core consumer prices have hovered around for months.

Overall or headline inflation fell sharply to 2.9 per cent year on year in January, from 3.7 per cent in December, beating the Reuters forecast of 3.8 per cent.