Singapore Core CPI Rises More Than Expected in September
2022.10.25 01:53
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Singapore Core CPI Rises More Than Expected in September
Budrigannews.com – Singapore inflation grew more than expected in September, data showed on Tuesday, with the island state’s monetary authority hiking its inflation outlook for the year due to persistent price pressures.
The (CPI), the preferred inflation gauge of the Monetary Authority of Singapore (MAS), rose 5.3% in September, higher than forecasts of 5.2% and last month’s reading of 5.1%.
Including the prices of items such as accommodation and private transport, Singapore’s headline rose 7.5% in September, in line with expectations and at the same pace as August. But the reading remained at its highest level since the 2008 financial crisis.
Food, services, and retail goods were the biggest contributors to the rise in inflation, the MAS said in a statement. The central bank noted that prices of energy and food commodities had likely come off their annual peaks, but were still expected to remain high due to supply constraints.
To this end, the MAS forecast that core inflation will “stay elevated in the next few quarters before slowing more discernibly in the second half of 2023.” The central bank also slightly raised its core CPI forecast for 2022, expecting it to average around 3.5% 4.5%, instead of its previous forecast of a range of 3% to 4%.
Headline inflation will average around 5.5 to 6.5%, the MAS said, compared to its previous forecast of 5% to 6%.
The reading comes as Singapore’s economy showed unexpected resilience in the third quarter, despite headwinds from rising commodity prices and a slowdown in China. This gave the MAS enough room to tighten policy for a fifth time this year.
The central bank is expected to keep policy tight in the coming months, as it moves to control runaway prices. But wage growth and consumer spending have remained steady this year, indicating that the underlying drivers of Singapore’s economy remain strong.
The showed little reaction to the data, trading flat against the greenback.
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