Singapore June core inflation at 2.9% y/y, lowest in more than 2 years
2024.07.23 01:56
SINGAPORE (Reuters) – Singapore’s key consumer price gauge rose 2.9% in June from a year earlier, lower than economists’ forecasts and the lowest reading since March 2022, official data showed on Tuesday.
The core inflation rate, which excludes private road transport and accommodation costs, was a notch lower than the 3.0% forecast in a Reuters poll of economists and compared with 3.1% seen in April and May.
The headline inflation measure in June was up 2.4% from the same month last year, lower than the 2.7% forecast in the poll. It was the lowest annual headline rate since August 2021.
The central bank is widely expected to keep its monetary policy settings unchanged at a review on Friday given concerns about potential inflationary risks from geopolitical friction.
Inflation in the Asian financial hub has been sticky. While it has cooled from a peak of 5.5% in early 2023, it had held above 3% until the June figure on Tuesday. Monetary Authority of Singapore (MAS) head Chia Der Jiun said last week that he expects core inflation to stay on its disinflation path and ease more significantly in Q4 this year.
“It is forecast to reach around 2% in 2025, barring further shocks,” said Chia at the release of MAS annual report.
Chia also said full-year economic growth was expected to come in closer to its potential rate of 2% to 3%. Growth in 2023 was 1.1%.
