Singapore’s Inflation Data

SINGAPORE (Reuters) – Singapore’s key consumer price gauge rose 1.8% in December from a year earlier, higher than economist forecasts and the lowest in more than three years, official data showed on Thursday.

The core inflation rate, which excludes private road transport and accommodation costs, was above the 1.7% forecast by a Reuters poll of economists and the 1.9% seen in November.

Headline inflation was 1.6% in annual terms in December, higher than economists’ forecast of 1.5%.

Inflation has declined from a peak of 5.5% in early 2023, and December’s rise is the smallest since November 2021, when it rose by 1.6%.

Lower inflation and higher growth have created room for the Monetary Authority of Singapore (MAS) to ease monetary policy during its scheduled review on Friday, though analysts are divided on whether the central bank will wait to assess the impact of U.S. President Donald Trump’s policies.

Singapore’s economy performed better than expected in 2024 with 4% growth in advance estimates, following a slowdown to 1.1% in 2023 from 3.8% in 2022.

The MAS has not changed policy since a tightening in October 2022, which was the fifth consecutive increase, as broader concerns about growth kept authorities sidelined.

The last easing occurred in March 2020 as Singapore prepared for a recession amid the global spread of COVID-19.

The trade ministry expects growth of 1.0% to 3.0% in 2025.