5 hours ago
3
SINGAPORE: Singapore's core inflation rose to 1.4 per cent year-on-year in February, up from 1 per cent in January, official data released on Monday (Mar 23) showed.
The figure is the highest since December 2024.
This is largely due to higher inflation in services, food and retail and other goods, partly reflecting seasonal effects associated with the Chinese New Year, 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 0.5 per cent in February.
Overall inflation, as measured by the Consumer Price Index-All Items, fell to 1.2 per cent in February from 1.4 per cent in January, due to lower accommodation and private transport inflation that more than offset higher 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 0.6 per cent in February.
SECTORS
Official data released on Monday showed that accommodation inflation declined to 0.3 per cent in February from 1.9 per cent the month before. This was due to a smaller increase in the cost of housing maintenance and repairs, said MAS and MTI.
Private transport inflation eased from 2.7 per cent in January to 2.4 per cent in February on account of a larger decline in petrol prices in February.
Electricity and gas prices fell from -4.2 per cent to -4.3 per cent because of a steeper decline in electricity prices in February, while retail and other goods inflation picked up slightly from 0.5 to 0.6 per cent due to a larger increase in the cost of medicines and health products, as well as higher prices for furniture and furnishings.
Food inflation rose to 1.6 per cent in February from 1.2 per cent, as the prices of non-cooked food and food services rose at a quicker pace.
Services inflation went up to 2 per cent, from 1.5 per cent, primarily because of an increase in airfares and the cost of holiday expenses.
OUTLOOK
MAS and MTI noted that global energy prices have risen significantly in recent weeks, due to the ongoing war in the Middle East, adding that Singapore’s import cost pressures are likely to pick up in the near term.
"On the domestic front, unit labour cost growth is likely to edge higher this year, although the extent of the pick-up will be dampened by sustained productivity growth.
"Meanwhile, private consumption demand should remain steady, amid continued real wage increases," they said.
The authorities noted that core and overall inflation are currently projected to average 1.0-2.0 per cent in 2026.
"MAS is assessing recent developments and will provide an update to the inflation outlook in the April monetary policy statement."
