Singapore (VNA) – Core consumer prices in Singapore rose at a slower pace for a fifth straight month in September, according to the Ministry of Trade and Industry (MTI) of Singapore.
However, economists say uncertainty looms over the inflation outlook, as the Middle East conflict may push energy prices up. A sharper global slowdown can also trigger greater easing of price pressures, they said.
Official data showed that core inflation, which excludes private transport and accommodation costs to better reflect the expenses of Singapore households, rose 3% year on year in September, which was the lowest level in 18 months.
The Monetary Authority of Singapore (MAS) held that core inflation is expected to ease further to under 3% year on year by December.
However, overall or headline inflation edged up to 4.1% year on year in September, slightly higher than the 4% in August.
The MTI predicted that due to increased certificate of entitlement (COE) prices, the country’s headline inflation is expected to average around 5% for full-year 2023, and 3-4% for 2024.
In early 2024, core inflation is expected to be impacted by the increase in the goods and services tax (GST) rate as well as seasonal effects. However, core inflation should resume a broadly moderating trend over 2024, as import cost pressures decline and tightness in the domestic labour market continues to ease, MAS and the MTI said.
Private transport inflation should slowly moderate over the course of next year alongside an expected increase in COE quotas. Accommodation inflation is also projected to ease as the supply of completed housing units increases, they said.
Experts held that inflation dynamics are still in a state of flux, given the latest developments in the Middle East, which adds increased uncertainty to energy prices.
MAS and the MTI noted the upside risks to inflation from fresh shocks to global energy and food commodity prices due to geopolitical conflicts and adverse weather events./.
However, economists say uncertainty looms over the inflation outlook, as the Middle East conflict may push energy prices up. A sharper global slowdown can also trigger greater easing of price pressures, they said.
Official data showed that core inflation, which excludes private transport and accommodation costs to better reflect the expenses of Singapore households, rose 3% year on year in September, which was the lowest level in 18 months.
The Monetary Authority of Singapore (MAS) held that core inflation is expected to ease further to under 3% year on year by December.
However, overall or headline inflation edged up to 4.1% year on year in September, slightly higher than the 4% in August.
The MTI predicted that due to increased certificate of entitlement (COE) prices, the country’s headline inflation is expected to average around 5% for full-year 2023, and 3-4% for 2024.
In early 2024, core inflation is expected to be impacted by the increase in the goods and services tax (GST) rate as well as seasonal effects. However, core inflation should resume a broadly moderating trend over 2024, as import cost pressures decline and tightness in the domestic labour market continues to ease, MAS and the MTI said.
Private transport inflation should slowly moderate over the course of next year alongside an expected increase in COE quotas. Accommodation inflation is also projected to ease as the supply of completed housing units increases, they said.
Experts held that inflation dynamics are still in a state of flux, given the latest developments in the Middle East, which adds increased uncertainty to energy prices.
MAS and the MTI noted the upside risks to inflation from fresh shocks to global energy and food commodity prices due to geopolitical conflicts and adverse weather events./.
VNA
