Updated April 23rd, 2024 at 11:49 IST

Singapore's March core inflation hits 3.1% YoY, falls short of expectations

March's headline inflation, reflecting the overall consumer price index, increased by 2.7% year-on-year, falling short of the 3% forecast in the poll.

Reported by: Business Desk
Inflation | Image:Unsplash
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Singapore core inflation March: Singapore's primary consumer price index climbed by 3.1 per cent in March compared to the same period last year, according to official data released on Tuesday. However, the figure fell short of economists' forecasts, underscoring ongoing economic dynamics and challenges.

The core inflation rate, which excludes private road transport and accommodation costs, registered at 3.1 per cent, below the 3.5 per cent projection from a Reuters poll of economists. This figure also marked a decline from the 3.6 per cent recorded in February.

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March's headline inflation, reflecting the overall consumer price index, increased by 2.7 per cent year-on-year, falling short of the 3 per cent forecast in the poll.

In a joint statement, the central bank and the trade ministry attributed the decrease in core inflation to reduced food and services inflation. Despite a decline from its peak of 5.5 per cent in January last year, inflation remains persistent amidst a backdrop of slowing economic growth. February had seen inflation reach a seven-month high.

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The full-year gross domestic product (GDP) for 2023 grew by 1.1 per cent, marking a moderation from the 3.8 per cent growth recorded in 2022. While Singapore anticipates higher GDP growth ranging between 1 per cent and 3 per cent this year, concerns linger over the mixed economic outlook due to geopolitical risks.

In April, the central bank opted to maintain its monetary policy settings unchanged during its second review of the year. Notably, it has transitioned to conducting quarterly reviews, departing from its previous semi-annual schedule, starting in 2024.

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(With Reuters inputs.)

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Published April 23rd, 2024 at 11:49 IST