Continue reading this on our app for a better experience

Open in App
Home News Singapore economy

Singapore inflation cools in March as MAS retains 2024 forecast

Bloomberg
Bloomberg • 2 min read
Singapore inflation cools in March as MAS retains 2024 forecast
Gains in the core measure, which excludes housing and private transportation costs, slowed to 3.1% last month from a year ago. Photo: Bloomberg
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Singapore’s core inflation eased in March on lower food prices and cost of services, with the disinflationary trend expected to continue barring any supply shocks from geopolitical tensions.

Gains in the core measure, which excludes housing and private transportation costs, slowed to 3.1% last month from a year ago, official data showed Tuesday. That was lower than the median 3.5% expected in a Bloomberg survey of economists, and compares with a seven-month high of 3.6% in February. 

Headline inflation slowed to 2.7% from 3.4% in February. That was the lowest in 30 months and compares with a 3.1% median in the Bloomberg survey.

The March readings provide a reprieve to the Monetary Authority of Singapore, which elected to extend its policy pause earlier this month amid expectations for inflation to step down by the fourth quarter and momentum to build in the trade-reliant economy. The authority will review its policy next in July.

The MAS and the Ministry of Trade and Industry retained their forecasts for both core and all-items inflation to average 2.5% - 3.5% this year.

See also: Singapore economy expected to grow by 2.7% y-o-y in 2Q2024

That outlook faces risks from geopolitical shocks and adverse weather events, which could put upward pressure on global energy and food commodity prices, as well as shipping costs, the MAS and the MTI said in a joint statement Tuesday.

The MAS, which uses the exchange rate instead of interest rates to stabilize prices, has kept the local dollar on an appreciating path to blunt imported inflation. But it needs to ensure that the Singapore dollar doesn’t appreciate to a level where it starts hurting exports.

Key figures from Tuesday’s CPI report:
  • Housing and utilities inflation quickened 3.7% from a year earlier
  • Food inflation quickened 3% y-o-y
  • Transport inflation was 0.9% y-o-y
  • Recreation and culture costs climbed to 4.6% y-o-y
  • Healthcare inflation was at 5%

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.