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Singapore CPI inflation hits over 2-year low in January

Published 23/02/2024, 04:16 pm
Updated 23/02/2024, 04:16 pm
© Reuters. Singapore consumer price index inflation grew at its slowest pace in more than two years in January, aided by decreasing fuel and housing costs, while tight monetary conditions saw a decline in recreational spending. 

Headline CPI inflation grew 2.9% year-on-year in January, official data showed on Friday. The figure was lower than expectations of 3.8% and eased from the 3.7% seen in December. Headline CPI inflation also grew at its slowest pace since September 2021.

Month-on-month CPI inflation picked up 0.7%.

Core CPI inflation, which excludes volatile items such as accommodation and private transport expenses, rose 3.1% y-o-y, less than expectations for a reading of 3.6% and slowing from the 3.30% seen in December. The reading is closely watched and considered by the Monetary Authority of Singapore in altering monetary policy.

Friday’s reading indicates that inflationary pressures may be easing faster than expected in the island state, especially thanks to stabler commodity costs and declining consumer spending.

But food price inflation still remained steady, as did spending on other miscellaneous goods. 

While inflation eased in January, it still remained relatively higher than levels seen before the COVID-19 pandemic, indicating that the MAS was likely to keep monetary conditions restrictive in the near-term.

The Singapore economy was also seen growing at a slower than initially expected pace in the fourth quarter.

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