Singapore’s core inflation up again, rises to 1.7% in March
This was due to an increase in both retail and other goods and services inflation, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).
Office workers in the central business district of Singapore. (File photo: iStock)
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SINGAPORE: Singapore’s core inflation rose for a second straight month to 1.7 per cent year-on-year in March, up from 1.4 per cent in February, official data released on Thursday (Apr 23) showed.
This is driven by higher inflation in retail and other goods and services, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in a joint media release.
On a month-on-month basis, core prices - which exclude accommodation and private transport - increased by 0.1 per cent in March.
Overall inflation, as measured by the Consumer Price Index-All Items, increased to 1.8 per cent in March from 1.2 per cent in February, due to higher private transport and core inflation.
On a month-on-month basis, overall inflation - which excludes non-consumption expenditures such as purchases of houses, shares and other financial assets and income taxes - increased by 0.5 per cent in March.
SECTORS
Official data released on Thursday showed that private transport inflation rose to 6.6 per cent in March from 2.4 per cent in February, due to higher petrol prices.
Retail and other goods inflation increased to 1.8 per cent in March from 0.6 per cent in February, largely due to a larger increase in the prices of alcohol and tobacco, as well as higher clothing and footwear prices.
Services inflation went up to 2.1 per cent, from 2 per cent, primarily because of a larger increase in the cost of point-to-point transport services, as well as the higher cost of telecommunication services.
Accommodation inflation remained unchanged at 0.3 per cent as housing rents rose at a similar pace.
Electricity and gas prices fell at the same rate in March as in February because electricity prices declined at a similar pace during this period.
Food inflation was also broadly unchanged as non-cooked food prices rose at the same rate in February and March, even as food services inflation moderated slightly in March.
OUTLOOK
Singapore’s imported cost pressures are expected to pick up and broaden in the months ahead, said MAS and MTI.
"As higher energy and other input costs arising from the developments in the Middle East pass through global supply chains, they will raise production and transport costs for a wide range of Singapore’s imported goods and services.
"On the domestic front, services unit labour costs are likely to grow at a slower pace this year as nominal wage growth eases from the firm levels last year. Meanwhile, domestic consumer spending could turn more cautious amid rising economic uncertainty," said the authorities.
MAS and MTI noted that core and overall inflation are currently projected to average 1.5-2.5 per cent in 2026, adding that the risks to the inflation outlook are "tilted to the upside".
"A more persistent disruption to global energy supplies or shortages in key intermediate inputs to regional supply chains could further raise imported costs for Singapore," said the authorities.
"However, downside risks are also present. A curtailment of industrial production due to supply chain disruptions or an abrupt tightening in global financial conditions could lead to a slowdown in economic activity and thus lower inflation."
