Singapore Core Inflation Falls to 0.8%, Lowest Since 2021

Singapore's inflation figures for January showed a significant slowdown, with headline inflation rising by 1.2% year-on-year, the lowest increase since February 2021, and core inflation decreasing to 0.8%, the lowest since June 2021. The decline in core inflation reflects lower price increases across various consumer categories, except for private transport. These figures fell short of economists' expectations, who had forecast higher rates based on previous trends. The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) noted that imported inflation is expected to remain moderate due to favorable supply conditions and declining global oil prices. The data comes after the MAS eased its monetary policy for the first time in five years, suggesting room for further easing as inflation aligns with policy goals. The MAS has adjusted its forecast for 2025 core inflation to 1% to 2%, indicating cautious optimism about price stability.