Singapore Inflation Eases To 2.7%, Lowest In 30 Months

Singapore consumer price inflation slowed in March to the lowest level in two-and-a-half years, largely due to a decline in private transport costs, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Tuesday.

The consumer price index rose 2.7 percent on a yearly basis in March, slower than the 3.4 percent increase in February. Economists had expected inflation to moderate to 3.1 percent.

Further, this was the weakest inflation since September 2021, when prices had risen 2.5 percent.

Likewise, core inflation softened to 3.1 percent in March from 3.6 percent in the previous month amid lower food and service inflation.

Data showed that private transport costs decreased 0.3 percent annually in March as car prices declined in tandem with lower COE premiums.

Meanwhile, food inflation eased to 3.0 percent from 3.8 percent, and service inflation decelerated to 3.9 percent from 4.2 percent.

Core inflation is expected to stay on a gradual moderating trend over the rest of the year as import cost pressures continue to decline and tightness in the domestic labour market eases, the MAS said.

For 2024 as a whole, both headline and core inflation are projected to average 2.5-3.5 percent.

Economic News