Singapore’s core inflation eases to 2.9% y-o-y in June due to lower inflation for retail and services

Felicia Tan
2-min read

Headline inflation rose by 2.4% y-o-y but fell by 0.2% m-o-m.

Singapore’s core inflation eased to 2.9% in June on a y-o-y basis, down from May's 3.1%. This was driven by lower inflation for retail & other goods, as well as services, reads the July 23 statement issued by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).

On a m-o-m basis, core CPI remained flat as increases in recreation & culture and housing & utilities were offset by m-o-m declines in clothing & footwear, healthcare and miscellaneous goods & services.

Headline inflation – or CPI all-items – also moderated to 2.4% on a y-o-y basis in June, down from May's 3.1%. The lower print was attributed to a decline in private transport costs as well as lower core inflation.

Headline inflation fell by 0.2% m-o-m as transport fell by 0.9% m-o-m.

MAS and MTI's outlook statement in June remained unchanged, noting that global prices of energy and most food commodities have remained "relatively stable" in recent months.

MAS core inflation is expected to remain on a "gradual moderating trend" over the rest of 2024 with a discernible drop in 4Q2024. Private transport inflation is also expected to moderate from last year with the larger supply of certificates of entitlement (COE) this year.

Core inflation in 2024 is projected to average between 2.5% to 3.5%. The forecast range for headline inflation is being reviewed and will be updated in MAS's monetary policy statement in July.

A total of 6,800 brands and varieties are included in the 2019-based CPI basket and are classified into 10 main expenditure divisions.

Core inflation – or Monetary Authority Singapore’s (MAS) core inflation – excludes the accommodation and private transport components.

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