Singapore's core inflation extends decline in Nov to 3-year low of 1.9%

Fall comes on the back of easing food and services costs; overall inflation rises to 1.6%

- Claire Huang

Singapore's core inflation continued its decline in November to a three-year low, beating economists' expectations, on the back of easing food and services costs.

Core inflation, which strips out private transport and accommodation costs to better reflect the expenses of households here, fell to 1.9 per cent year on year, from 2.1 per cent in October.

This is the lowest since November 2021, when core inflation was 1.6 per cent.

Economists polled by Bloomberg had estimated the median core inflation to be 2.1 per cent.

Overall – or headline – inflation rose to 1.6 per cent year on year in November, up from 1.4 per cent in October but lower than the Bloomberg poll of 1.8 per cent. The slight increase was led by a more gradual decline in private transport costs.

On a month-on-month basis, which shows the momentum in prices, both core inflation and overall inflation were unchanged.

Professor Lawrence Loh of the strategy and policy department at NUS Business School said the latest data "augurs well for us".