Macroeconomics

Singapore August Core Inflation Rises 3.4%, Seen Easing

September 25, 2023, 12.27 PM | Source: Reuters

ILUSTRASI. Singapore's key consumer price gauge rose 3.4% in August.. REUTERS/Travis Teo

MACROECONOMICS - SINGAPORE. Singapore's key consumer price gauge rose 3.4% in August, almost matching economists' forecasts, and easing compared with July's figures due to lower inflation for services, food, retail and other goods, official data showed on Monday.

The core inflation rate - which excludes private road transport and accommodation costs - climbed 3.4% year-on-year in August, almost in line with a forecast in a Reuters poll of economists of 3.5%, and lower than the 3.8% seen in July.

"Global supply chain frictions have largely eased, and food commodity prices remain below year-ago levels," said a joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry.

Headline inflation in August was up 4% from the same month last year, as forecast in the poll.

"Consumer price inflation in Singapore's major trading partners has also been on a gradual moderating trend," the authorities added.

Economists are generally expecting MAS, the central bank, to keep monetary policy settings unchanged in a scheduled review next month, on a weak growth outlook and still-elevated but easing inflation.